Fold Holdings, Inc.

What they do

Fold operates a U.S.-based platform that integrates bitcoin with traditional banking and payments. Products include an FDIC-insured checking account (via Sutton Bank), a Visa prepaid debit card, a bitcoin rewards credit card, a bitcoin gift card, bill payments, and merchant reward offers. Bitcoin trading and custody are provided through a partnership with BitGo. The company also offers employer programs like the Employee Bitcoin Bonus launched in January 2026.

Revenue drivers

• Transaction-based revenue — Driven by total transaction volume of $165 million in Q2 2026; includes interchange and merchant offer fees from card-linked and gift card activity.
• Bitcoin rewards and trading — Low-to-zero fee bitcoin buying/selling and custody; monetized via spreads and custody services, though contributed to revenue decline in Q2 2026 due to lower bitcoin prices.
• Fold Credit Card — In early access with over 2,000 cardholders as of August 11, 2026; interchange and financing economics meeting or exceeding expectations; positioned as a customer acquisition engine.
• Banking and deposit economics — Lead Bank partnership enables participation in customer deposit economics; expected to generate recurring asset-based revenues, though still nascent.

Recent performance

Q2 2026 revenue was $6.1 million, down from $9.1 million in Q1 2026 and $7.4 million in Q4 2025. Net loss was $9.7 million, with adjusted EBITDA loss of $5.5 million and loss per share of $0.19. Revenue for 2025 was $31.8 million versus $23.8 million in 2024, but net losses widened to $69.6 million in 2025 from $65.1 million in 2024. Cash and equivalents were $28.4 million as of June 30, 2026, and the company held 194 BTC in treasury.

Strategy

Fold is transitioning from a transaction-based model to a broader financial services platform, aiming to hold and manage customer assets. The strategy leverages its proprietary bank-grade core ledger and Lead Bank partnership to generate recurring asset-based revenues. Expansion includes growing the Fold Credit Card program, adding gift card distribution via TikTok Shop, and renewing retail partnerships like Kroger. Management emphasizes building a multi-asset platform to broaden its total addressable market beyond bitcoin-native customers.

Risks

• Bitcoin price volatility — Q2 2026 saw lower bitcoin prices pressuring transaction activity and consumer engagement, directly impacting revenue.
• Nasdaq delisting risk — An 8-K on July 17, 2026 indicates a delisting notice or listing-rule failure, which could affect stock liquidity and access to capital.
• Concentration in bitcoin-focused model — Heavy reliance on bitcoin adoption and regulatory acceptance creates vulnerability if crypto market sentiment weakens.
• Secured debt and liquidity — Eliminated $20 million of secured debt in Q2 2026, but ongoing net losses and negative operating cash flow ($16.1 million in 2025) require continued capital raises.

Outlook

Management expects asset-based revenue streams from customer deposits to become a meaningful part of the economic model, funding richer rewards. The Credit Card program is positioned to scale beyond early access, with interchange and financing economics performing well. Company aims to expand total addressable market by attracting non-bitcoin-native customers through broader financial services. No specific revenue or profitability guidance was provided.