Fold, a publicly traded Bitcoin financial services company, has retired $66.3 million in convertible debt, removing a potential source of shareholder dilution and strengthening its capital structure ahead of planned product expansion. The company disclosed that it paid off two outstanding convertible notes, which previously allowed debt holders to convert their positions into equity under certain conditions. By eliminating these instruments, Fold significantly reduces the possibility of future share issuance that could dilute existing investors’ ownership stakes. Bitcoin Collateral Released As part of the restructuring, Fold also freed 521 Bitcoin that had been pledged as collateral against the convertible notes, restoring full control over those digital assets. With the obligations settled, the previously encumbered Bitcoin can now be deployed for general corporate purposes, offering greater operational and financial flexibility. The company stated that retiring the notes reduces financing constraints and positions Fold to pursue strategic growth initiatives more aggressively. Expansion Into Consumer Credit One priority includes launching a consumer-focused Bitcoin rewards credit card that distributes BTC instead of traditional points or cash-back incentives. Fold originally built its brand around a debit card that allows users to spend U.S. dollars while earning Bitcoin rewards on everyday purchases. Over time, it expanded into savings features and merchant partnerships designed to encourage long-term Bitcoin accumulation rather than immediate crypto spending. Founded in 2019, Fold went public on the Nasdaq in February 2025 through a SPAC merger with FTAC Emerald Acquisition, becoming one of the first Bitcoin-centric financial services firms listed on a major U.S. exchange. Despite that milestone, Fold shares have fallen more than 84% since debuting publicly, underscoring the volatility facing crypto-aligned equities. Intensifying Competition In Crypto Rewards The broader crypto rewards market has grown increasingly competitive, with multiple companies offering alternative cards tied to digital asset incentives. Coinbase’s card enables customers to spend cryptocurrency balances directly while earning rewards, forming part of its broader strategy to integrate payments, trading, and financial services. Other competitors, including Nexo, Bybit, and Crypto.com, offer crypto-backed or Visa-branded cards that provide token-based cashback and borrowing capabilities against digital assets. More recently, Mastercard partnered with MetaMask to introduce a U.S. crypto-linked card that converts digital assets to fiat currency at the point of sale. Against that backdrop, Fold’s debt elimination and collateral release represent a strategic effort to streamline operations while preparing to compete more aggressively within the expanding digital rewards ecosystem.
