Fold sells $45M in Bitcoin, clears secured debt, frees $25M

Fold Holdings, the Phoenix-based fintech listed on Nasdaq as FLD, said Wednesday it sold about $45 million of Bitcoin. About $20 million of the proceeds were used to retire all of the company’s secured, Bitcoin-collateralized debt, and the remaining roughly $25 million will fund product and customer growth.

The firm liquidated roughly $45 million of BTC at an average price near $71,000 per coin. The debt retirement removes monthly interest payments on the secured facility, which the company said should improve near-term cash flow.

In a statement, CEO Will Reeves wrote, “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.” He added the company is entering “one of the most important growth periods in the company’s history” as several products near rollout.

Fold said the freed capital will be used to expand its Bitcoin rewards credit card, support planned product launches including a Bitcoin gift card and a business service for employer crypto bonuses, and to accelerate customer acquisition rather than rebuild crypto reserves tied to financing.

The company reported first-quarter revenue of $5.6 million, a 21% decline from a year earlier. After the announcement, shares rose to $1.60 shortly after markets opened, a 162% increase from the prior close, then eased to about $1.10 at the time of the update, still more than 80% higher on the day. FLD shares have fallen about 58% since the start of the year and more than 78% over the last 12 months.