Fold Holdings (FLD) completely said it has completely settled its collateralized loan and freed capital for corporate development by monetizing approximately $45 million worth of its (BTC) holdings at an average price of $71,000 per coin.
Fold used $20 million of the proceeds to eliminate all of its bitcoin-collateralized debt and allocated the remaining $25 million toward growth, the company disclosed in a Wednesday announcement.
At $71,000 per bitcoin, the $45 million transaction implies Fold liquidated roughly 634 bitcoin.
Bitcoin Treasuries data puts the company's current holdings at approximately 826 BTC, though that figure predates Wednesday's disclosure and has not yet been updated to reflect the transaction.
Chairman and CEO Will Reeves framed the sale as a defensive move ahead of what the company described as a pivotal product launch period.
The debt retired was bitcoin-collateralized, meaning the collateral was exposed to price swings in an asset that has dropped roughly 14% since Fold's implied sale price.
Eliminating the facility also removes monthly cash interest payments, which Fold said will improve its cash flow profile immediately. The $25 million in unrestricted cash is earmarked to scale the company's consumer and enterprise platforms, with management citing its recently launched Bitcoin Credit Card as the primary growth vehicle.
Fold said the improved liquidity also positions it to support a larger cardholder base and bring additional financing partnerships online.
"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 said in the release.
Fold added it retains the option to monetize additional holdings if management determines that doing so represents the highest-return use of capital for shareholders. Its revolving credit facility remains available.
The move places Fold among a small but growing list of public bitcoin treasury companies that have sold holdings this cycle.
Strategy — the largest corporate bitcoin holder — sold 32 bitcoin for roughly $2.5 million between May 26 and 31, its first sale since 2022. Nakamoto Inc. sold approximately 284 bitcoin for $20 million in March at an average of around $70,422 per coin, a roughly 40% loss from its cost basis.
Fold's average sale price of $71,000 sits above the current spot by a meaningful margin. Bitcoin was trading near $61,200 at the time of publication, according to The Block's price page.
FLD shares surged up to 160% Wednesday on the Nasdaq following the announcement, recovering from a 52-week low of $0.93 hit just nine days earlier.
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