Fold Holdings sold about $45 million worth of Bitcoin and wiped out all of its secured debt, reshaping its balance sheet ahead of new product launches and expansion plans. The Nasdaq-listed fintech company said the Bitcoin was sold at an average price of roughly $71,000 per coin. From the proceeds, $20 million went to repay Bitcoin-backed debt, while the remaining $25 million was retained as unrestricted cash.
Investors reacted quickly. Fold shares jumped as much as 162% in Wednesday trading after the announcement, though the rally later cooled sharply as traders took profits off the initial surge.
Debt removal gives Fold more room to operate
The company said eliminating secured debt improves liquidity, lifts monthly cash flow, and gives management more flexibility to invest in new products and financing partnerships. Executives added that the restructuring removes financing constraints that could have limited future expansion and should also cut monthly interest expense, improving the company’s cash flow profile through the year.
Chairman and CEO Will Reeves said in a statement that Fold believes it is in a growth phase and needs to keep investing in that future. He also said the move reflects the company’s conviction in its roadmap, arguing that reduced financing risk and a stronger balance sheet should keep short-term market volatility from interfering with execution.
Fresh cash is earmarked for recently launched products
Management said the added capital will support recently launched offerings, including the Fold Credit Card, Bitcoin Gift Card, and the Fold Business platform. Reeves said the Fold Bitcoin Credit Card remains one of the company’s largest long-term opportunities, and that the stronger balance sheet should support growth in cardholders and related partnerships.
Even after reducing its Bitcoin holdings, Fold said it still maintains a significant Bitcoin treasury position.
Other public companies have also used Bitcoin reserves
Fold’s move follows similar actions by other firms holding Bitcoin on their balance sheets. Sequans Communications sold 1,025 BTC in the first quarter to help redeem convertible debt and fund an ADS buyback program, while AI-focused Genius Group liquidated its remaining Bitcoin holdings to reduce debt and improve liquidity.
MARA Holdings also sold 15,133 BTC for roughly $1.1 billion, using most of the proceeds to repurchase convertible senior notes. Mining company Bitdeer exited its full 943 BTC treasury position as well. Taken together, these deals show a recent pattern: some public companies are turning to Bitcoin reserves to strengthen balance sheets and fund corporate needs.