Fold Holdings announced on February 27, 2026 that it has retired $66.3 million of convertible debt that had been outstanding since 2024. The extinguishment removed two convertible notes that carried a combined coupon of 6.5% and were secured by 521 bitcoins held as collateral.
The debt retirement eliminates the associated interest expense of roughly $4.3 million per year and removes the conversion risk that could have diluted the company’s share count by an estimated 8.0 to 10.0 million shares. By clearing the notes, Fold reduces its debt‑to‑equity ratio and frees cash that can be deployed toward the upcoming launch of its Fold Credit Card.
The Fold Credit Card, announced in September 2025 in partnership with Stripe and Visa, is slated for a Q1 2026 launch and offers up to 3.5 % back in Bitcoin rewards. The debt restructuring provides the financial flexibility needed to scale the card’s distribution and marketing programs, and to support the broader product roadmap.
"Management remains focused on leveraging our new financial position to deliver on its product roadmap and drive long‑term shareholder value. By removing restrictive legacy structures and simplifying our balance sheet, we have created..." – Will Reeves, CEO
"By retiring these convertible instruments, we're creating direct value for shareholders through a stronger balance sheet, reduced debt, and increased flexibility to capitalize on market opportunities. Eliminating the convertible notes meaningfully simplifies our capital structure and removes a significant overhang from our business. With a cleaner balance sheet and greater flexibility, we are now positioned to more aggressively invest in scaling our operating businesses." – Wolfe Repass, CFO
The release of 521 bitcoins from collateral also adds liquidity to Fold’s treasury, which held 1,526 BTC as of November 2025. The additional BTC can be used to support strategic investments or to hedge against market volatility, further enhancing the company’s financial resilience.
While the announcement did not trigger a measurable market reaction, the move is viewed positively by analysts as a clean‑up of legacy debt that had been a drag on the company’s financial metrics. The debt elimination is expected to improve future earnings per share by reducing interest expense and dilution risk.
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