Fold Holdings Secures $250 Million Equity Purchase Agreement
On July 2, Fold Holdings, Inc. (NASDAQ: FLD), the first publicly traded bitcoin financial services company, announced a $250 million equity purchase agreement to substantially increase its bitcoin holdings. Under the terms, Fold has the option, but not the obligation, to issue and sell up to $250 million in new common stock. Access to the funds is subject to conditions, including the requirement that a registration statement covering the resale of the stock be filed with and approved by the Securities and Exchange Commission (SEC).
The shares will be issued through a private placement, relying on exemptions from the Securities Act of 1933 and Regulation D. Fold noted it plans to file a registration statement with the SEC relating to the resale of common stock issuable under the facility. The company cannot draw on the facility, and common stock may not be sold, until the SEC declares the registration statement effective.
Proceeds Primarily for Bitcoin Treasury
According to the press release, “The Company is not required to use the Facility and controls the timing and amount of any drawdown on the Facility, subject to certain restrictions. The Company expects to use the net proceeds from the Facility, if any, primarily to acquire additional bitcoin for Fold’s corporate treasury.” This reinforces Fold’s bitcoin-first treasury strategy, using equity rather than debt to expand its cryptocurrency reserve.
Fold Holdings is one of the few publicly traded companies that hold bitcoin as a primary reserve asset. If fully utilized, the $250 million facility could significantly boost its bitcoin holdings. The company maintains full discretion over drawdowns, allowing it to time purchases based on market conditions and bitcoin price.
Bitcoin Gift Card Targets $300 Billion Retail Market
On May 19, Fold also launched its Bitcoin gift card, marking its entry into the $300 billion U.S. retail gift card market. This product lets consumers purchase and gift bitcoin through familiar retail channels, with plans to expand to major retailers nationwide throughout the year.
Chairman and CEO Will Reeves stated, “This gift card gives us distribution directly to millions of Americans who may not be buying Bitcoin because they haven’t downloaded a new app, don’t have a brokerage account, or haven’t seen the ETF. I think there’s a real chance by the end of 2025 that Bitcoin becomes the most popular gift in America because of this card.” The initiative aims to lower the barrier for mainstream adoption, leveraging the gift card channel to attract traditional non-crypto users.