Key Highlights
- Fold sold about $45 million in Bitcoin to clear all its secured debt and strengthen its balance sheet.
- The company used $20 million to repay debt and kept $25 million for growth, especially its Bitcoin credit card and new products.
- Fold still holds Bitcoin but now has less debt pressure and more financial flexibility, joining other firms using BTC to manage operations.
Fold Holdings, a Nasdaq-listed company, stated that it sold about 634 Bitcoin (BTC) at an average price of roughly $71,000 per BTC to reset its balance sheet and fund its next stage of expansion. The complete transaction was valued at around $45 million.
According to the official announcement made on Wednesday, the company stated that it used the transaction to fully clear its secured debt, improve cash flow, and unlock more flexibility for growth as it prepares for a wave of new product launches.
$25 million set aside for growth plans
Instead of simply holding Bitcoin as a reserve asset, Fold said it converted a portion of its treasury into cash, using $20 million to fully repay its Bitcoin-collateralized loan and wiping out all secured debt tied to crypto assets. The remaining $25 million was kept as unrestricted cash and assigned to growth projects, including its consumer and enterprise services.
This includes scaling its Bitcoin Rewards Credit Card, Bitcoin Gift Card, and business services, which the company sees as core engines for future revenue. The company said the structure of the deal allowed it to remove interest payments tied to the loan, which immediately improved its monthly cash flow position and gave the firm more room to operate.
Restructuring unlocks assets and reduces risk
Based on the average sale price, Fold liquidated roughly 634 BTC during the transaction. Before the sale, the company’s Bitcoin holdings were estimated at around 826 BTC, according to Bitcoin Treasuries data, though that figure had not yet been updated after the restructuring.
In short, Fold still holds Bitcoin, but it now has less debt pressure attached to it. Some Bitcoin that was locked as loan security was released after the repayment, giving the company more control over its assets.
The debt that was cleared was tied directly to Bitcoin collateral, meaning price swings in the asset had exposed the company to added risk. By removing this debt, Fold is trying to protect itself from sudden market shocks. It also removes monthly interest payments, which means the company now has more cash available every month to run its business.
“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,” said Chairman and CEO Will Reeves. In other words, Fold wants to focus on building products without worrying too much about short-term price changes in Bitcoin.
What’s next for Fold
The company is now putting more focus on growth. Its primary focus is the Bitcoin Rewards Credit Card, which allows users to earn Bitcoin when they spend money. Fold believes the product can bring in many new users over time.
With stronger cash flow, the company expects to support more cardholders, form new banking and financing partnerships, and expand its services. It is also preparing new product launches that it believes will increase user activity and revenue.
The company also pointed to its recent business performance to show momentum. In 2025, Fold recorded about $31.8 million in revenue, which is a 34% increase compared to the previous year.
Since it launched in 2019, it has processed more than $2 billion in total transactions and distributed over $45 million in Bitcoin rewards to users.
Broader trend of firms selling holdings to repay debt
The move places Fold among a growing list of Bitcoin-focused public companies using parts of their holdings to manage debt or fund operations.
In May 2026, Sequans, another Bitcoin-holding firm, announced that it sold part of its holdings to pay convertible debt. The company is now left with about 658 unrestricted BTC in its holdings. Genius Group also sold its entire Bitcoin treasury to repay approximately $8.5 million in debt in April.
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