Key facts
- Fold Holdings sold approximately $45 million worth of Bitcoin at an average price of $71,000 per coin.
- The company used $20 million of the proceeds to eliminate its bitcoin-collateralized debt.
- An additional $25 million was allocated for growth initiatives, including scaling consumer and enterprise platforms.
- Fold Holdings' share price surged up to 160% on the Nasdaq following the announcement.
- The company stated the move reduces financing risk and strengthens its balance sheet.
Fold Holdings' share price jumped as much as 160% on the Nasdaq after the company announced it had sold approximately $45 million worth of Bitcoin at an average price of $71,000 per coin. The fintech firm used $20 million of the proceeds to fully pay off its bitcoin-collateralized debt and allocated the remaining $25 million toward corporate development, including scaling its consumer and enterprise platforms. Chairman and CEO Will Reeves described the move as defensive, aimed at reducing financing risk and improving cash flow by eliminating monthly interest payments. This restructuring strengthens Fold's balance sheet ahead of a period of product launches, with the Bitcoin Credit Card cited as a primary growth vehicle. The company retains the option to monetize additional holdings and its revolving credit facility remains available. Fold is among a growing list of public companies that have sold Bitcoin holdings this cycle, though its sale price was above the current spot market.