Fold Holdings sells Bitcoin to repay debt and fund growth

Fold Holdings (NASDAQ: FLD) has sold about $45 million worth of Bitcoin at an average price of $71,000 per coin. The company has used $20 million out of this sale to eliminate all of its secured debt and then directed the remaining $25 million toward growth initiatives.

The $71,000 average exit price for the Bitcoin sale stands at roughly 14% above BTC’s current price at around $62,200. This price difference suggests Fold executed the sales either during a period when BTC traded higher, or structured the transactions to ensure they happened at favorable pricing, rather than dumping its tokens into a falling market.

Bitcoin saving a business under pressure?

Fold’s revenue in the first quarter of 2026 fell 21.1% to $5.6 million, with transaction volumes dropping by about 32% over the same period, according to the company’s Q1 earnings report.

The current market conditions have not helped, as Bitcoin dipped below $60,000 before recovering, and US spot Bitcoin ETFs recorded $2.3 billion in net outflows during May, their worst so far in 2026.

Tuesday’s sale is Fold’s second major deleveraging move in four months. In February, the company let go of $66.3 million in convertible notes and recovered 521 BTC that had been pledged as collateral.

Fold believes BTC sale is healthy for long-term

Fold Holdings disclosed the sale in a press release and described it as balance-sheet hygiene rather than distress selling. The Phoenix-based company also stated that the Bitcoin sale directly improved its monthly net cash flow and left the company with a healthy credit facility still available for future use.

“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 Will Reeves, Fold’s chairman and CEO, according to the company’s statement.

Reeves also mentioned a product pipeline that includes a Bitcoin Gift Card and Fold Business tools. “Over the past year, we’ve built one of the strongest product roadmaps in our history,” he stated in the press release. The company believes selling some BTC to increase liquidity will favor support for a larger cardholder base and pursue additional funding relationships for its credit card program rolled out on May 27.

Fold’s Bitcoin credit card program now has more than 1,000 cards in circulation as at the end of 2026’s first quarter.

Fold holdings and investor reaction to BTC sale

Fold said it still holds a “meaningful” Bitcoin treasury but did not disclose exact figures still held in the company’s treasury. Data from Bitcoin Treasuries pegs the company’s remaining holdings at approximately 826 BTC, worth almost $51.3 million.

The company also maintains a $250 million equity purchase facility designed for future Bitcoin acquisitions.

Fold’s actions are in line with recent moves by other publicly traded firms that hold Bitcoin on their balance sheets. MARA Holdings also sold 15,133 BTC for approximately $1.1 billion in March to retire $1 billion in convertible notes.

Investors have responded sharply to the sale, with FLD shares surging nearly 140% in premarket trading on Tuesday after the announcement. The stock is currently up 27% in the last 24h, and trades at $0.7886 as at the time of writing.

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