Fold Holdings has sold about $45 million worth of bitcoin at an average price of $71,000 per coin, using part of the proceeds to eliminate all outstanding bitcoin-backed debt. The company said $20 million was used to repay the debt in full, while the remaining $25 million will go toward expansion.
Additionally, the transaction implies roughly 634 bitcoin were sold, leaving Fold with an estimated 826 BTC based on earlier disclosures. That figure has not yet been officially updated.
Chief executive officer Reeves said the move was timed to support an active product rollout. Removing the debt eliminates recurring interest costs and reduces exposure to price swings in pledged bitcoin, which has fallen about 14% since the implied sale price.
Capital redirected to product expansion
Fold said the freed capital will be used to expand both consumer and enterprise operations, with a focus on its newly launched bitcoin credit card. The company expects the added liquidity to support growth in cardholders and enable new financing partnerships.
Management added that future bitcoin sales remain possible if deemed an efficient use of capital. Its revolving credit facility remains available as a liquidity backstop.
Shares surge despite broader market weakness
Fold executed the sale at a premium to prevailing market levels, with bitcoin trading near $61,200 at the time of disclosure. Following the announcement, the company’s Nasdaq-listed shares jumped as much as 160%, rebounding from a 52-week low of $0.93 recorded just over a week earlier.
Companies increasingly realize gains from bitcoin holdings
Fold’s move aligns with a growing pattern among publicly listed firms managing bitcoin treasuries. Strategy recently sold 32 bitcoin for about $2.5 million, marking its first sale since 2022. Nakamoto Inc. also sold roughly 284 bitcoin for $20 million earlier this year at an average price near $70,422.
This trend reflects a more pragmatic approach among companies, as they monetize holdings to strengthen balance sheets and fund operations rather than holding assets indefinitely.
Market pressure weighs on sentiment
The sales come during a period of sustained weakness in the bitcoin market. Prices have fallen below $60,000, marking the lowest levels since late 2024. The asset has declined around 27% in 2026 and remains roughly 50% below its all-time high.
A sharp reversal in flows tied to bitcoin ETFs has contributed to the downturn, with outflows estimated between $2.8 billion and $3.5 billion. This prolonged withdrawal suggests weakening demand and a shift in sentiment among large market participants.
The Crypto Fear and Greed Index has dropped to 11, indicating extreme fear and highlighting widespread caution among traders.
Outlook hinges on key price levels and macro signals
Technical analysts say bitcoin needs to reclaim the $63,000 to $64,000 range to challenge the current bearish trend. Failure to do so could leave the asset vulnerable to further declines, with some projections pointing toward $55,000 or even the $40,000 range later in 2026.
Macroeconomic conditions remain an added source of uncertainty. U.S. inflation recently held at 4.2% year-over-year, keeping expectations around Federal Reserve rate policy in focus and adding pressure to risk assets, including cryptocurrencies.
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