Fold Holdings (NASDAQ: FLD) sold approximately $45 million worth of bitcoin at an average price of around $71,000 per coin, using the proceeds to eliminate all of its secured debt and invest in future growth.
The Phoenix-based bitcoin financial services company allocated $20 million from the sale to repay bitcoin-collateralized debt and directed the remaining $25 million toward expansion efforts.
Clearing the balance sheet
The transactions wiped out all of Fold’s secured debt obligations and improved monthly cash flows by removing recurring interest payments.
CEO Will Reeves framed the move as a strategic pivot:
“We believe Fold is poised for near-term growth and investing in that future is exactly what the company needs to do. Increased liquidity and lower debt ensure we have the resources and flexibility to execute our plans during this pivotal moment for Fold.”
Stock under pressure
The debt reduction comes at a difficult time for the company.
Fold’s market capitalization sits at just $31 million, with shares trading at $0.61—down 88% over the past year.
The company reported Q1 2026 earnings per share of -$0.59, badly missing the forecasted -$0.13, while revenue of $5.59 million came in well below the $10.09 million analysts expected.
Growth plans ahead
Fold still maintains a bitcoin treasury position after the sale and retains the option to liquidate additional holdings if needed.
The company’s revolving credit facility—a four-year senior secured line with Encina Lender Finance that could reach up to $150 million—remains available.
Management said the strengthened balance sheet will support expansion of its credit card program, allowing it to serve more cardholders and pursue additional funding relationships:
“We have the resources and flexibility to execute our plans during this pivotal moment for Fold.”
Fold describes itself as the first publicly traded bitcoin financial services company, offering products including a credit card, debit card, and bitcoin gift cards through its app.
