Fold sells $45M in bitcoin, clears $20M debt
Fold sold about $45 million of bitcoin at roughly $71,000 per coin, repaid $20 million in bitcoin-collateralized loans and kept $25 million in cash to fund credit-card and product growth.
Fold Holdings, a Nasdaq-listed bitcoin financial services company, recently sold about $45 million of bitcoin at an average price near $71,000 per coin.
Roughly $20 million of the proceeds were used to repay bitcoin-collateralized loans, eliminating the company’s secured debt obligations and removing the related monthly interest payments. The firm retained about $25 million in unrestricted cash.
Company filings indicated the cash will be used to fund expansion of its bitcoin credit card and other product development, and that the repayment improves near-term cash flow by cutting financing costs.
The company kept an available revolving credit facility to support future growth and will maintain a bitcoin treasury while preserving the option to monetize additional digital assets if such sales offer attractive returns for shareholders.
Fold listed recent product rollouts including a bitcoin credit card, a bitcoin gift card and a Fold Business platform, and said additional products are planned in the coming months to broaden market reach.
“We believe Fold is poised for near-term growth and investing in that future is exactly what the company needs to do,” Will Reeves, Fold’s chairman and chief executive, said.
Company filings noted the transactions were reported to investors and regulators as part of routine updates.
The sale and debt repayment follow a pattern among crypto-focused firms of reducing leveraged positions while pursuing consumer bitcoin products.
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