Fold, a publicly traded Bitcoin financial services company, has eliminated $66.3 million in convertible debt, removing a potential source of share dilution and simplifying its balance sheet as it prepares to expand its product lineup. In a company disclosure, Fold said it retired two outstanding convertible notes—debt instruments that can be converted into equity—thereby reducing the risk of future share issuance that could dilute existing shareholders.
The firm also released 521 Bitcoin (BTC) that had been pledged as collateral against the debt. With the notes retired, those Bitcoin holdings are no longer encumbered and can be deployed for corporate purposes. Fold said the move reduces financing constraints and increases liquidity flexibility, which it plans to use to support product initiatives, including a consumer Bitcoin rewards credit card.
Founded in 2019, Fold 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 U.S. exchange. Fold’s shares have fallen more than 84% since their public debut.
Crypto rewards cards compete for users
Fold built its brand as a Bitcoin rewards platform, offering a debit card that lets users spend U.S. dollars while earning Bitcoin cashback on everyday purchases. It later added savings features and merchant partnerships aimed at encouraging Bitcoin accumulation rather than direct crypto spending. Competition in the crypto rewards space is intense.
Coinbase’s Card lets users spend crypto balances directly and earn crypto rewards as part of its broader “super app” strategy. Nexo’s card allows customers to borrow against crypto holdings to make purchases without selling assets while earning rewards. Bybit and Crypto.com issue Visa-branded cards that provide cash back in platform-linked crypto tokens. More recently, Mastercard and MetaMask launched a U.S. crypto-linked card that converts crypto to fiat at the point of sale, enabling spending where Mastercard is accepted.
