Fold Holdings Sells Bitcoin, Eliminates Debt to Fund Growth

In brief

Fold Holdings sold ~$45M in Bitcoin, used $20M to wipe out all secured debt and redirected the remaining $25M toward growth.

The debt-free balance sheet is intended to accelerate expansion of its Bitcoin rewards credit card and support new product launches.

The moves also eliminate monthly interest payments, improving cash flow for a company that posted a 21% revenue decline in Q1 2026.

Fold Holdings, the Phoenix-based fintech company that lets consumers earn and spend Bitcoin through everyday financial products, announced Wednesday it has eliminated all of its secured debt and freed up $25 million in fresh capital by selling some of its BTC holdings. The firm’s share price more than doubled after the opening bell, following the announcement.

The Nasdaq-listed firm liquidated roughly $45 million worth of Bitcoin at an average price of about $71,000 per coin, used $20 million of those proceeds to retire Bitcoin-collateralized debt, and redirected the remaining $25 million toward growth initiatives. The restructuring leaves Fold debt-free on its secured obligations.

"This decision reflects our conviction in Fold," CEO Will Reeves said in a statement. "We have reduced financing risk, strengthened our balance sheet, and ensured that short-term market volatility cannot stand in the way of executing our roadmap.”

“As we approach several product launches,” he added, “we believe Fold is entering one of the most important growth periods in the company's history."

Investors responded positively to the announcement, with shares in FLD jumping as high as $1.60 after the opening bell—a 162% spike over Tuesday’s closing price. As of this writing, shares are trading at $1.10, still a more than 80% increase on the day.

Even with the sizable rebound, however, FLD shares have fallen about 58% since the start of the year, and over 78% over the last 12 months.

Recent Fold launches include a Bitcoin rewards credit card, a Bitcoin gift card product, and a business-focused offering that includes its “Bitcoin Bonus” service to enable employers to pay out crypto bonuses to employees.

Reeves said management views the Fold Bitcoin Credit Card as one of the most significant long-term growth opportunities within its ecosystem, and that the cleaner balance sheet positions the company to expand its cardholder base and pursue additional lending partnerships.

The debt elimination also immediately removes monthly cash interest payments, which Fold said should improve its cash flow profile throughout the year as new products come online.

Fold's first-quarter revenue came in at $5.6 million, a 21% decline from a year earlier, according to the company's most recent earnings report.