Fold sells $45 million in Bitcoin to repay debts

Nasdaq-listed Bitcoin financial services provider Fold announces a series of capital transactions to strengthen its balance sheet. The company sells approximately $45 million worth of Bitcoin, uses the proceeds to repay debt and retains cash for further growth.

Bitcoin is available at OKX and Bybit.

Debt fully repaid after sale

Fold sells its Bitcoin reserves at an average price of $71.000 per coin, which is currently well above the current price of $62.220, Of the total proceeds of $45 million, $20 million goes to repaying Bitcoin-backed debt. This means Fold is completely free of all its secured debt, the company reports via Globe Newswire.

Fold uses the remaining $25 million of freely available capital for growth initiatives within the company. This involves further expansion of both the consumer platform and the business platform. Fold positions itself as a financial services provider that makes it easy for people to earn, save and spend Bitcoin through everyday financial tools.

Bitcoin reserve remains intact despite sale

Despite the large sale, Fold indicates that the company still holds a significant Bitcoin reserve. The company itself describes this reserve as “meaningful” and states that it continues to dynamically adjust its asset allocation to support future growth. Fold’s liquidity position and cash flow improve significantly through this restructuring.

The timing of the sale is notable, as the Bitcoin price is currently hovering around $62.220, Fold thus managed to reduce its position at a price that was more than 14% higher than the current level. At the same time, there are also major players in the market who bought the recent dip around $60.000. Fold’s move shows that companies with Bitcoin on their balance sheet are increasingly making strategic choices regarding the timing of sales and reallocation.