Fold Eliminates $66.3M in Convertible Notes, Unlocks Bitcoin Holdings
Bitcoin-focused financial services firm has successfully cleared $66.3 million worth of convertible debt obligations, mitigating shareholder dilution concerns while growing its Bitcoin rewards offerings.
Bitcoin financial services provider Fold, which trades publicly, has successfully cleared $66.3 million worth of convertible debt obligations, eliminating a prospective catalyst for shareholder dilution while streamlining its financial position in preparation for upcoming product expansion efforts.
According to a recent company announcement, Fold successfully retired a pair of convertible notes that remained outstanding. These financial instruments, which have the capability to transform into company equity down the line, no longer pose a threat to existing stakeholders. The elimination of these notes means the company has averted the possibility of issuing additional shares that could have watered down current shareholder ownership stakes.
Additionally, Fold disclosed that it has freed up 521 Bitcoin (BTC) previously locked as security backing the debt obligations. Now that the convertible notes have been settled in full, these Bitcoin assets are unencumbered and available for deployment toward corporate objectives.
According to company statements, the financial reorganization provides Fold with reduced constraints on its financing activities and enhanced freedom in operational decision-making. The firm intends to leverage this newfound flexibility to fuel expansion strategies, particularly the introduction of a consumer-focused Bitcoin rewards credit card offering BTC earnings as an alternative to conventional loyalty points or cash-back incentive programs.
Established in 2019, Fold achieved public market status on the Nasdaq exchange during February 2025 via a SPAC combination with FTAC Emerald Acquisition, marking its position as among the earliest Bitcoin-centered financial service providers to secure listing on a prominent United States stock exchange.
Crypto rewards cards compete for users
Fold established its reputation as a platform centered on Bitcoin reward mechanisms, providing a debit card product enabling users to make US dollar-denominated purchases while simultaneously receiving Bitcoin cashback on routine transactions. As time progressed, the organization broadened its service portfolio to encompass savings-oriented features alongside merchant partnership arrangements designed to promote Bitcoin acquisition as opposed to direct cryptocurrency expenditure.
The landscape for crypto-based rewards programs remains intensely competitive, with numerous alternative providers delivering comparable product offerings.
Take the Coinbase Card as an illustration—this product enables users to directly spend their cryptocurrency holdings while simultaneously collecting crypto-based rewards on their transactions. The card has been integrated into Coinbase's expanded "super app" initiative unveiled during the previous fall season, which seeks to consolidate payment processing, cryptocurrency trading and additional financial service capabilities within one unified platform environment.
The competing Nexo Card product empowers customers to secure loans backed by their cryptocurrency portfolios for making purchases without liquidating their digital asset positions, all while accumulating rewards. Meanwhile, both Bybit and Crypto.com have introduced Visa-branded card solutions delivering cashback denominated in crypto tokens associated with their respective platforms.
In more recent developments, Mastercard partnered with MetaMask to introduce a United States crypto-connected card enabling users to spend their digital currency holdings at any retail location accepting Mastercard payment credentials, with cryptocurrency automatically converting to traditional fiat currency during the transaction completion process.