Bitcoin Financial Services Company Fold Eliminates $66.3M Debt, Releases 521 BTC Collateral

Fold, a publicly traded Bitcoin financial services company, has completed a significant balance sheet restructuring, eliminating $66.3 million in convertible debt and releasing 521 Bitcoin that had been pledged as collateral against the obligations. The retirement of two outstanding convertible notes removes a potential source of share dilution as the company prepares to expand its product offerings. By paying off the debt instruments, which could have been converted into equity at a later date, Fold reduces the risk that new shares would be issued, which may have diluted existing shareholders. With the notes retired, the 521 BTC previously held as collateral are now unencumbered and available for corporate purposes. The company states that the restructuring provides greater operational flexibility and fewer financing restrictions, positioning it to support growth initiatives including the rollout of a consumer-targeted Bitcoin rewards credit card. Fold, founded in 2019, went public on Nasdaq in February 2025 through a SPAC merger with FTAC Emerald Acquisition, becoming one of the first Bitcoin-focused financial services companies to trade on a major US exchange. The company built its brand as a Bitcoin rewards platform, offering a debit card that allows users to earn Bitcoin cashback on everyday purchases. The crypto rewards card market has become increasingly competitive, with competitors including the Coinbase Card, Nexo Card, Bybit Card, Crypto.com Card, and a recently launched Mastercard-MetaMask collaboration. Industry analysts note that the sector continues to evolve as traditional financial services companies explore cryptocurrency integration.