Fold Holdings Sells Bitcoin to Eliminate Debt and Fund Growth
- Fold Holdings sold approximately $45 million in Bitcoin at an average price of $71,000 per coin.
- The company used $20 million from the sale to eliminate all secured debt, leaving it debt-free on secured obligations.
- Remaining $25 million will be directed towards growth initiatives, including expansion of its Bitcoin rewards credit card.
- Fold’s share price surged by as much as 162% following the announcement, despite a year-to-date decline of about 58%.
- First-quarter revenue fell by approximately $5.6 million, marking a decline of around 21% compared to the previous year.
Fold Holdings’ strategic move to sell Bitcoin and eliminate secured debt aims to strengthen its financial position and support new product launches such as the Bitcoin rewards credit card. The elimination of monthly interest payments is expected to improve cash flow throughout the year.
Despite a significant rebound in share price following this announcement, Fold’s shares have experienced substantial declines over the past year. The company’s focus remains on leveraging its cleaner balance sheet for growth opportunities.Source
