Fold sells $45M in Bitcoin to wipe out debt and fund growth

Fold, the Nasdaq-listed Bitcoin financial services firm, sold roughly $45 million in Bitcoin and used the proceeds to completely clear its secured debt while banking the rest for future expansion.

About $20 million went straight to repaying Bitcoin-backed secured debt. The remaining $25 million is earmarked for business growth.

The math behind the move

Fold sold at an average price of $71,000 per Bitcoin, which means the company offloaded somewhere in the neighborhood of 634 BTC. That price point sits well below where Bitcoin trades today, suggesting these sales may have occurred over a period of time or during a dip earlier this year.

The company says it has now repaid all secured debt. In English: Fold no longer has any loans backed by its Bitcoin holdings hanging over its balance sheet.

Fold also noted it has improved its liquidity and cash flow structure as part of what it described as a series of capital restructuring measures. The company still holds what it called a “meaningful” Bitcoin reserve, though it did not specify exactly how much BTC remains on its books.

Why sell Bitcoin to fund a Bitcoin company

Here’s the thing. A Bitcoin-focused company selling Bitcoin sounds counterintuitive, like a steakhouse going vegetarian. But carrying secured debt backed by a volatile asset is a real liability management headache. If Bitcoin’s price drops sharply, those loans can trigger margin calls or force liquidations at the worst possible time.

By selling proactively at $71K per coin and wiping the debt slate clean, Fold traded some upside exposure for balance sheet stability. The $25 million growth war chest also gives the company dry powder to invest in its business without needing to raise dilutive equity or take on new debt.

Fold said it plans to dynamically adjust its asset allocation going forward to support future growth, which suggests the company isn’t done accumulating Bitcoin. It’s just doing it on cleaner terms now.

What this means for investors

For shareholders, the immediate signal is positive on the balance sheet front. Zero secured debt and $25 million in growth capital is a meaningfully different risk profile than a company leveraged against its own Bitcoin stack.

The risk, of course, is opportunity cost. If Bitcoin continues climbing well past $71K, Fold sold low relative to future prices. That’s the trade-off every corporate Bitcoin holder faces: hold for maximum exposure, or sell to build a more resilient business.

The fact that Fold retained a reserve and signaled ongoing dynamic allocation suggests it’s trying to thread that needle, staying exposed to Bitcoin’s upside while removing the structural fragility that comes with crypto-collateralized debt.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.