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- Fold Holdings sold approximately $45 million worth of Bitcoin, used $20 million to wipe out all secured debt and redirected the remaining $25 million toward growth.
- The debt-free balance sheet aims to accelerate the expansion of the Bitcoin Rewards Credit Card and support new product launches.
- The moves also eliminate monthly interest payments, improving cash flow for a company that posted a 21% revenue decline in the first quarter of 2026.
Fold Holdings, the Phoenix-based fintech company that lets consumers earn and spend Bitcoin Via Financial Products Daily, it announced on Wednesday that it has canceled all of its secured debt and freed up up to $25 million in new capital by selling some of its bitcoin holdings. The company’s stock price doubled after the opening bell following the announcement.
The Nasdaq-listed company liquidated approximately $45 million worth of bitcoin at an average price of about $71,000 per coin, used $20 million of those proceeds to pay down debt collateralized by bitcoin, and redirected the remaining $25 million toward growth initiatives. The restructuring leaves Fold debt-free with respect to its secured obligations.
“This decision reflects our conviction in Fold,” CEO Will Reeves said in a statement. statement. “We reduced financing risks, strengthened our balance sheet, and ensured that short-term market volatility could not stand in the way of executing our roadmap.”
“As we approach multiple product launches, we believe Fold is entering one of the most important growth periods in the company’s history,” he added.
Investors responded positively to the announcement, with FLD shares jumping to $1.60 after the opening bell — a 162% rise from Tuesday’s closing price. As of this writing, shares are trading at $1.10, up more than 80% on the day.
However, even with the significant rebound, FLD shares are down about 58% since the beginning of the year, and more than 78% over the past 12 months.
Fold’s recent launches include a Bitcoin rewards credit card, a Bitcoin gift card product, and business-focused offerings including Bitcoin Reward service. To enable employers to pay crypto rewards to employees.
Reeves said management views the Fold Bitcoin Credit Card as one of the most significant long-term growth opportunities within its ecosystem, and that the cleaner balance sheet positions the company to expand its cardholder base and seek additional lending partnerships.
Debt cancellation also immediately removes monthly cash interest payments, which Fuld said should improve the cash flow profile throughout the year as new products come online.
Fold’s first-quarter revenue was $5.6 million, down 21% from a year earlier, according to the company’s latest earnings report.
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