Fold (NASDAQ: FLD), a bitcoin financial services company listed on Nasdaq, said it monetized about $45 million of its bitcoin treasury at an average price of roughly $71,000 per BTC. The company used the proceeds to fully repay $20 million of bitcoin-backed secured debt and retained the remaining $25 million as non-dilutive cash capital.
Partial bitcoin treasury sale removes all secured debt
According to the company announcement, the move was designed to improve Fold’s balance sheet through a tactical monetization of part of its BTC holdings. Fold said the transaction eliminated all secured debt on its books. After debt repayment, the remaining cash became unrestricted cash that will be allocated to the company’s next phase of growth.
Fold said the transaction improves liquidity, removes monthly cash interest expense, and strengthens monthly net cash flow. The company also said it still holds a meaningful bitcoin treasury position after the sale, leaving room to monetize additional holdings later if conditions warrant.
Fresh capital will be directed to Fold’s bitcoin credit card
CEO Will Reeves said the decision reflects management’s confidence in the business, while also reducing financing risk and strengthening the balance sheet. He added that short-term market volatility will not derail the company’s product roadmap.
Reeves said Fold has built its strongest product lineup over the past year, including its credit card, bitcoin gift card offerings, and the Fold Business product. He said the added liquidity from this transaction will directly support the scaling of the Fold Bitcoin Credit Card™, which the company sees as one of the most important long-term growth drivers in its ecosystem. The lower debt load and added cash, he said, also give Fold more capacity to support more cardholders and pursue additional financing partnerships.