Fintech App Fold Eliminates $66M in Debt
The Fold App announced it has eliminated $66.3 million in convertible debt from its balance sheet. The move unlocked 521 BTC and puts the company in a stronger financial position for future product launches.
The recent move by Fold to eliminate $66.3 million in convertible debt involved the extinguishment of two significant notes. One was a $46.3 million secured convertible note held by SATS Credit Fund, and the other was a $20 million convertible note from institutional investor ATW Partners. This action is anticipated to remove an estimated 8.0 to 10.0 million potential shares from Fold's fully diluted share count, simplifying its capital structure. Unlocking 521 BTC, previously held as collateral for these notes, provides Fold with significant financial flexibility. Based on current market values, this amount of Bitcoin is worth approximately $33.8 million. This strategic maneuver strengthens the company's balance sheet as it prepares for future growth initiatives. This debt restructuring is a key step for Fold as it gears up for the launch of its new Fold Bitcoin Rewards Credit Card. The upcoming Visa card, powered by Stripe's infrastructure, will offer users up to 3.5% back in Bitcoin on every purchase, positioning it as a direct competitor to traditional rewards cards. The new credit card will feature a tiered rewards system, with Fold+ members earning 2% unlimited bitcoin rewards and up to $250 in bonuses. This product launch aligns with the company's broader strategy to integrate Bitcoin into everyday financial tools and establish it as a primary savings asset for consumers. Led by CEO and co-founder Will Reeves, Fold has been a notable player in the Bitcoin-focused fintech space since its most recent iteration in 2019. The company went public in 2025 and has positioned itself as the first publicly traded Bitcoin financial services company, holding a significant Bitcoin treasury. Prior to this debt elimination, Fold had a history of raising capital through various funding rounds, including a $13 million Series A round to fuel its growth and expand access to its Bitcoin cashback debit card. This latest financial restructuring signals a move towards a more sustainable long-term financial position.
