Fold, a Bitcoin financial services company, has written off $66.3 million in convertible debt, removing a potential source of share price declines and simplifying its balance sheet as it prepares to expand its product portfolio.
In a recent disclosure, Fold said it retired two outstanding convertible notes, which are debt instruments that can be converted into equity at a later date. By paying them, the company reduces the risk of issuing new shares in the future, which may dilute existing shareholders.
Fold also said it issued 521 Bitcoin (BTC) that was pledged as collateral against the loan. When the notes are retired, those Bitcoin assets are no longer valuable and can now be used for corporate purposes.
The company said the restructuring will leave it with fewer funding constraints and greater operational flexibility. Fold plans to use this flexibility to support growth initiatives, including the rollout of a Bitcoin Rewards credit card that offers consumers BTC instead of traditional points or cash rewards.
Founded in 2019, Fold listed on the 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 US exchange.
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Crypto rewards cards compete for users
Branding itself as a Bitcoin rewards platform, Fold offers a debit card that allows users to spend USD and earn Bitcoin cashback on everyday purchases. Over time, the company expanded its services to include savings features and merchant partnerships to encourage Bitcoin accumulation rather than direct crypto spending.
Competition in the crypto rewards space is fierce, with a number of other companies offering similar products.
For example, the Coinbase Card allows users to spend cryptocurrency balances directly and earn crypto rewards on purchases. It is now part of Coinbase’s broader “super app” strategy, announced last fall, which aims to integrate payments, commerce and other financial services into a single platform.
Nexo Card’s rival offering allows customers to borrow from their crypto holdings to make purchases without having to sell their assets, while earning rewards. Bybit and Crypto.com offer Visa-branded cards that provide cash in crypto tokens linked to their platforms.
Recently, Mastercard and MetaMask launched a US crypto-linked card that allows users to spend digital assets at any merchant that accepts Mastercard, with crypto converted to fiat at the point of sale.
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