Fold goes full HODL-free: sells $45M in Bitcoin, pays off debt, and pockets $25M 🧹

Fold Holdings, the Phoenix-based fintech listed on Nasdaq under the ticker FLD, announced Wednesday it has eliminated all of its secured debt and unlocked $25 million in unrestricted capital after selling roughly $45 million worth of Bitcoin at an average price of about $71,000 per coin. The company used $20 million of the proceeds to retire Bitcoin-collateralated debt in full, with the remaining $25 million earmarked for growth initiatives, leaving Fold debt-free on its secured obligations.

Shares of FLD spiked as high as $1.60 after the opening bell, a 162% jump over Tuesday's closing price. By midday, the stock was trading at $1.10, still up more than 80% on the day. Despite the rebound, FLD remains down roughly 58% year-to-date and over 78% over the past 12 months. Fold reported first-quarter revenue of $5.6 million, a 21% decline from a year earlier, according to its most recent earnings release.

"This decision reflects our conviction in Fold," Chairman and CEO Will Reeves said in a statement. "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." Reeves added, "As we approach several product launches, we believe Fold is entering one of the most important growth periods in the company's history." The restructuring also removes monthly cash interest payments, which Fold said should improve its cash flow profile as new products come online.

Recent Fold product launches include a Bitcoin rewards credit card, a Bitcoin gift card, and a business-focused offering featuring its "Bitcoin Bonus" service, which lets employers pay out crypto bonuses to employees. Reeves said management views the Fold Bitcoin Credit Card as one of the most significant long-term growth opportunities in its ecosystem, and that the cleaner balance sheet positions the company to expand its cardholder base and pursue additional lending partnerships. According to BitcoinTreasuries.NET, Fold still holds 192 BTC worth about $12.1 million.

The monetization came ahead of Bitcoin's recent slide, as $BTC was trading at $62,742.09 at press time, up 1.92% over the prior 24 hours but down more than 22% over the previous month. The announcement also coincided with fresh inflation data: the U.S. Bureau of Labor Statistics said Wednesday that the Consumer Price Index rose 4.2% year-over-year in May, the fastest annual pace in three years, reinforcing expectations that the Federal Reserve will keep policy restrictive and potentially pressure crypto prices further.