Fold Holdings sells $45M in bitcoin, clears debt, stock surges
6.7 Investments Fold Holdings sold $45M in bitcoin, used $20M to clear secured debt, and allocated $25M for growth. The move improved liquidity and cash flow, causing the stock to surge. The company retains a sizable bitcoin treasury.
Fold Holdings recently underwent a significant financial restructuring, selling about $45 million in bitcoin at an average price of $71,000 per coin. Of the proceeds, $20 million was used to fully pay off its bitcoin-collateralized secured debt, eliminating recurring interest expenses and improving cash flow. The remaining $25 million was dedicated to supporting new product launches and platform growth initiatives, both current and upcoming. This strategic move was well received by the market, with Fold's stock price surging between 36% and 160% across various trading periods after the announcement. Despite the sale, Fold maintains a substantial bitcoin treasury, reportedly holding around 1,492 BTC post-transaction. The company also repaid convertible notes, freeing up additional bitcoin previously held as collateral. Management stated these actions strengthen the balance sheet, reduce financing risk, and enhance flexibility for future growth.
