Fold Expands Bitcoin Treasury with Additional BTC Purchase

Rhea-AI Summary

Fold Holdings (NASDAQ: FLD) has expanded its bitcoin treasury with the purchase of 10 additional bitcoin at an average price of $87,500 per bitcoin, including fees and expenses. The company now holds over 1,000 Bitcoin in its corporate treasury, positioning itself among the top 15 corporate bitcoin treasuries in the United States.

The purchase follows Fold's recent public listing on Nasdaq under the ticker 'FLD', offering investors exposure to the company's vision of bitcoin as a standard for savings. CEO Will Reeves affirmed the company's commitment to integrating bitcoin into their business and treasury strategy, indicating plans for continued opportunistic accumulation.

Positive

• Holds over 1,000 BTC in corporate treasury
• Ranks among top 15 US corporate bitcoin treasuries
• Recent successful Nasdaq listing
• Strategic bitcoin accumulation demonstrates strong treasury management

Negative

• High average purchase price of $87,500 per bitcoin
• Significant exposure to bitcoin price volatility

Insights

Financial Analyst

Fold Holdings (NASDAQ: FLD) has purchased an additional 10 bitcoin at $87,500 per coin ($875,000 total), representing approximately 0.32% of the company's $277 million market cap. This acquisition brings Fold's bitcoin holdings to over 1,000 BTC, positioning it among the top 15 corporate bitcoin treasuries in the United States.

This treasury strategy places Fold in the company of larger firms like MicroStrategy and Tesla that have adopted bitcoin as a reserve asset, though on a smaller scale. The purchase timing is notable, coming after bitcoin reached new all-time highs, suggesting the company views current prices as still attractive for long-term holding despite recent volatility.

For shareholders, this treasury approach creates a hybrid investment: exposure to both Fold's core bitcoin financial services business and direct bitcoin price appreciation potential. However, this strategy introduces significant balance sheet volatility and concentration risk that traditional financial services companies typically avoid.

The announcement strategically follows Fold's Nasdaq listing, likely aimed at positioning the company as a bitcoin-focused investment vehicle. CEO Will Reeves' statement indicates this isn't a one-time purchase but part of an ongoing accumulation strategy.

This move reflects a broader trend of companies seeking alternative treasury strategies amid economic uncertainty, though Fold's approach is more aggressive than most public companies that typically maintain more diversified reserves. For investors, Fold now effectively offers a leveraged bitcoin play - combining operational bitcoin exposure through its services with direct bitcoin price exposure through its treasury holdings.

Cryptocurrency Expert

Fold Holdings' purchase of 10 additional bitcoin at $87,500 per coin ($875,000 total investment) strengthens its position as a bitcoin-focused financial services company. With over 1,000 BTC now in treasury, Fold has committed approximately 30-35% of its $277 million market cap to bitcoin holdings - a substantially higher allocation than most public companies with bitcoin treasuries.

Fold operates in the bitcoin rewards space, offering products that allow consumers to earn bitcoin through everyday spending. This treasury strategy creates alignment between their business model and balance sheet management, effectively doubling down on bitcoin exposure.

The purchase timing near bitcoin's all-time highs contrasts with typical corporate treasury strategies that prioritize buying during market corrections. This suggests Fold may be positioning itself as a "bitcoin maximalist" play for public market investors rather than attempting to time market cycles.

For context, while MicroStrategy holds over 200,000 BTC and Tesla has held as much as 43,000 BTC, Fold's 1,000+ bitcoin position is significant relative to its size. This makes Fold one of the most bitcoin-intensive public companies on a percentage-of-market-cap basis.

The strategy creates distinctive accounting challenges, as bitcoin holdings must be marked to market with impairment losses recognized immediately while gains only appear upon sale. This could create quarterly earnings volatility despite operational stability.

For investors, Fold now represents a hybrid investment vehicle - part operating business and part bitcoin holding company - offering exposure to both bitcoin's potential appreciation and the growing market for bitcoin-based financial services.

With over 1,000 Bitcoin in its corporate treasury, Fold is building the financial products of tomorrow amid a wave of global bitcoin adoption

PHOENIX--(BUSINESS WIRE)-- Fold Holdings, Inc. (NASDAQ: FLD) (“Fold”), a pioneering bitcoin financial services company, today announced the opportunistic purchase of an additional 10 bitcoin for its treasury at an average price of approximately $87,500 per bitcoin, inclusive of fees and expenses.

This latest bitcoin addition underscores Fold’s belief that bitcoin is a valuable long-term asset and aligns with its strategy of holding bitcoin as a core treasury reserve. Fold is positioned among the top 15 corporate bitcoin treasuries in the United States.

The announcement comes on the heels of Fold’s recent public listing on Nasdaq under the ticker “FLD,” which provides investors the opportunity to gain exposure to Fold’s vision of a world where bitcoin is the standard for savings.

“Fold remains dedicated to integrating bitcoin into our business and treasury strategy,” said Will Reeves, Chief Executive Officer of Fold. “Like our customers, we aim to take advantage of opportunities to add bitcoin and expect to continue to build our treasury opportunistically going forward. We believe in bitcoin’s long-term potential and plan to continue to accumulate as we endeavor to build the future of bitcoin-powered finance.”

For more information about Fold and its bitcoin rewards offerings, visit https://foldapp.com/

About Fold

Fold is a leading bitcoin financial services company dedicated to expanding access to bitcoin investment opportunities through premium financial products. By integrating bitcoin into everyday financial services, Fold aims to make the American Dream available to more people. For more information, visit https://foldapp.com/investors.

Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of the federal securities laws with respect to the anticipated benefits of the business combination. Forward-looking statements may be identified by the use of words such as “may,” “could,” “would,” “should,” “predict,” “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include the potential benefits of the business combination, Fold’s treasury strategy and the potential success of Fold’s market and growth strategies. These statements are based on assumptions and on the current expectations of Fold’s management and are not predictions of actual performance. Many actual events and circumstances are beyond the control of Fold. These forward-looking statements are subject to a number of risks and uncertainties, including: (i) changes in domestic and foreign business, market, financial, political and legal conditions; (ii) the failure to realize the anticipated benefits of the business combination; (iii) the effect of the consummation of the business combination on Fold’s business relationships, performance, and business generally; (iv) the ability to implement business plans and other expectations after the completion of the business combination, and identify and realize additional opportunities; (v) the risk of downturns, new entrants and a changing regulatory landscape in the highly competitive industry in which Fold operates; and (vi) those factors discussed in Fold’s filings with the Securities and Exchange Commission. If any of these risks materialize or Fold’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. While Fold may elect to update these forward-looking statements at some point in the future, each specifically disclaims any obligation to do so, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225926184/en/

Investors and Media

Fold@icrinc.com

Source: Fold Holdings, Inc.

FAQ

How many bitcoins did Fold Holdings (FLD) purchase in its latest treasury expansion?

Fold Holdings purchased 10 additional bitcoins at an average price of $87,500 per bitcoin, including fees and expenses.

What is the total size of Fold Holdings' (FLD) bitcoin treasury?

Fold Holdings maintains over 1,000 Bitcoin in its corporate treasury.

How does Fold's (FLD) bitcoin treasury rank among US corporations?

Fold ranks among the top 15 corporate bitcoin treasuries in the United States.

What was the average purchase price for FLD's recent bitcoin acquisition?

The average purchase price was approximately $87,500 per bitcoin, including fees and expenses.

When did Fold Holdings (FLD) get listed on Nasdaq?

The press release indicates Fold's Nasdaq listing under ticker 'FLD' occurred recently, prior to this bitcoin purchase announcement.