Fold Holdings sold approximately $45 million in bitcoin at an average price of $71,000 per unit and allocated $20 million of that amount to fully cancel the BTC-collateralized debt it carried on its balance sheet.
The remaining $25 million was assigned to the growth of its consumer and enterprise platforms. Following the announcement, the company’s shares responded with a gain of up to 160% in the session, recovering from a 52-week low of $0.93 recorded just nine days earlier.
The transaction involves the liquidation of approximately 634 BTC. According to data from Bitcoin Treasuries, Fold retains around 826 BTC on its balance sheet, although that figure does not yet reflect the change disclosed this Wednesday.
Chairman and CEO Will Reeves stated that the sale was a defensive decision ahead of a period the company characterized as critical for product launches. He also noted that its Bitcoin Credit Card is the firm’s primary growth vehicle.
Reeves also pointed out that eliminating the credit facility removes monthly interest payments and immediately improves the cash flow profile. The average sale price of $71,000 exceeds the current spot price by a significant margin: Bitcoin was trading near $61,200 at the time of writing.
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