Fold, the publicly traded Bitcoin-focused financial services firm, has retired $66.3 million in convertible debt and released 521 BTC that had been pledged as collateral. In a company disclosure, Fold said it paid off two outstanding convertible notes—debt instruments that can be converted into equity—removing a potential source of future share issuance and simplifying its balance sheet.
With the notes retired, the 521 Bitcoin are no longer encumbered and can be used for corporate purposes. Fold described the move as reducing financing constraints and increasing liquidity flexibility so it can better support product development, including plans for a consumer Bitcoin rewards credit card.
Fold launched in 2019 and went public on the Nasdaq in February 2025 via a SPAC merger with FTAC Emerald Acquisition. Since its debut, the company’s shares have lost more than 84% of their value.
Fold established itself as a Bitcoin rewards platform, initially offering a debit card that lets users pay in dollars while earning Bitcoin cashback. It later added savings tools and merchant partnerships to encourage Bitcoin accumulation rather than direct crypto spending.
Competition in the crypto rewards card market is intense. Coinbase’s Card lets users spend crypto balances directly and integrates into its broader app ecosystem. Nexo’s card enables purchases by borrowing against crypto holdings. Bybit and Crypto.com issue Visa-branded cards that deliver cash back in platform-linked tokens. More recently, Mastercard and MetaMask introduced a U.S. crypto-linked card that converts crypto to fiat at the point of sale, usable wherever Mastercard is accepted.
By retiring convertible debt and freeing the collateralized Bitcoin, Fold aims to reduce dilution risk and gain more strategic flexibility as it pursues product expansion in a competitive market.