--- title: "Fold Holdings Balances Crypto Headwinds With Card Push" type: "News" locale: "en" url: "https://longbridge.com/en/news/286341206.md" description: "Fold Holdings, Inc. (FLD) reported its Q1 earnings, revealing a mixed outlook amid a Bitcoin downturn. The company launched a credit card with over 1,000 users and a waitlist of 8,000, while the Bitcoin Gift Card is driving user acquisition. Operating expenses decreased by 19%, and net loss narrowed to $29.2 million. However, transaction volumes fell 31% year-over-year, leading to a 21% revenue decline. The company holds 826 Bitcoin valued at nearly $67 million, which ties its financial profile to crypto market volatility. Management remains focused on scaling revenue-generating products despite current challenges." datetime: "2026-05-14T00:55:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286341206.md) - [en](https://longbridge.com/en/news/286341206.md) - [zh-HK](https://longbridge.com/zh-HK/news/286341206.md) --- # Fold Holdings Balances Crypto Headwinds With Card Push Fold Holdings, Inc. ((FLD)) has held its Q1 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Fold Holdings’ latest earnings call painted a nuanced picture, blending confidence in new products and a stronger balance sheet with clear warning signs from a harsh Bitcoin downturn. Management stressed disciplined scaling, positive unit economics and a sizable Bitcoin treasury, but also confronted sharp volume and revenue declines and a deeper adjusted EBITDA loss in the near term. ## Credit Card Launch and Early Traction Fold’s new credit card moved into early access in March and is already live with more than 1,000 users, backed by a waitlist exceeding 8,000 potential cardholders. Early cohorts appear to treat it as a primary card for both everyday and larger purchases, while management deliberately throttles rollout to validate underwriting, fraud controls and overall unit economics. ## Bitcoin Gift Card Drives User Acquisition The Bitcoin Gift Card remains a key acquisition engine, onboarding thousands of new customers and reactivating dormant users, particularly through retail distribution partners like major grocers. Management is redesigning gift card economics to sharply cut or even remove customer-facing fees, aiming to speed adoption and widen distribution without sacrificing long-term value. ## New Bitcoin Bonus Program Targets Employers Fold introduced a Bitcoin bonus program for businesses, with early partners including well-known restaurant chains and other employers, enabling staff to earn bonuses in Bitcoin. Early feedback from companies and employees is positive, and management sees a large market spanning small businesses to enterprises, with potential extensions into payroll, benefits and corporate spend. ## Company-Level Cost Reductions Operating expenses fell to $13.4 million in the quarter from $16.6 million a year earlier, a reduction of roughly 19% that signals tighter cost discipline. The decline was driven by lower direct costs, reduced share-based compensation and lower professional services fees, providing some cushion against weaker top-line trends. ## Improved Net Loss Year-over-Year Net loss narrowed meaningfully to $29.2 million in Q1 2026 from $48.9 million in Q1 2025, reflecting improvements across several non-operating and cost categories. While the business remains unprofitable, this year-over-year progress shows that prior restructuring and cost actions are starting to flow through the income statement. ## Stronger Cash Position and Simpler Capital Structure Cash and cash equivalents increased to $11.5 million from $7.7 million at year-end, giving Fold more flexibility to fund product expansion. The company also extinguished its existing convertible notes, simplifying its capital structure and improving future financing options as it pursues new credit facilities. ## Significant Bitcoin Treasury on the Balance Sheet Fold ended the quarter holding 826 Bitcoin in its investment treasury, valued at nearly $67 million as of March 31, providing a sizable strategic asset base. This position offers potential upside if Bitcoin prices recover, though it also ties part of the company’s financial profile to crypto market volatility. ## All Products Deliver Positive Contribution Margins Management highlighted that every current product line generates positive contribution margins, meaning incremental usage adds value even at today’s scale. This structure positions Fold to benefit disproportionately when transaction volumes and customer numbers grow, especially as new offerings mature. ## Material Declines in Transaction Volumes Transactional volumes fell 31% year-over-year in Q1, reflecting an industry-wide pullback as Bitcoin prices retreated sharply from recent highs. The drop underscores Fold’s sensitivity to crypto cycles, with lower consumer trading and spending activity pressuring near-term growth. ## Revenue Decline Tracks Weaker Activity Total revenues decreased 21% year-over-year, mirroring reduced trading activity and softer consumer engagement during the Bitcoin slump. The timing of monetization from newer products, including the credit card, also limited revenue offsets in the quarter. ## Adjusted EBITDA Deterioration Adjusted EBITDA came in at negative $5.8 million, worse than the negative $4.2 million recorded a year ago, signaling an expanded operating loss. The deterioration was driven by higher payroll costs and stepped-up investment in product development and marketing, even as volumes sagged. ## Increased Cash Used in Operations Net cash used in operating activities rose to $6.6 million from $5.0 million in the prior-year period, indicating higher near-term cash burn despite cost cuts. This trend highlights the importance of scaling revenue-generating products and securing financing to support card growth. ## Bitcoin Market Pressure Weighs on KPIs Management linked weaker performance metrics directly to a nearly 50% slide in Bitcoin prices from the October peak to February, which dampened consumer spending and investment behavior. They noted that February marked a year-to-date bottom across core KPIs, suggesting conditions may be stabilizing from those lows. ## Portion of Bitcoin Treasury Pledged as Collateral Of the 826 Bitcoin held in treasury, 430 BTC is pledged as collateral under a credit facility, reducing the amount immediately available for alternative uses. This arrangement underpins current financing but also constrains liquidity, adding another layer of risk management to the balance sheet. ## Credit Card Not Yet Material to Revenue The new credit card has not yet made a meaningful contribution to quarterly revenue, given its March early-access start and phased rollout strategy. Management emphasized that the card’s real financial impact depends on successful scaling and securing additional funding facilities to support higher credit limits and user growth. ## Forward-Looking Guidance and Strategic Focus Looking ahead, Fold plans to expand its credit card from the current 1,000-plus users and 8,000-plus waitlist toward tens or even hundreds of thousands of cardholders, contingent on validated risk models and securing warehouse-style financing. The company aims to make the card a key driver of volume and revenue, overhaul Bitcoin Gift Card fees toward cost-neutrality to fuel funnel growth, and scale its Bitcoin bonus program, all while keeping fixed costs in check and improving margins in a challenging crypto backdrop. Fold’s earnings call showcased a company leaning into product innovation and unit economics while navigating the drag of a severe Bitcoin pullback. For investors, the story hinges on whether emerging products like the credit card and business bonus program can scale fast enough, and with sufficient financing, to turn today’s positive contribution margins into a sustainable path toward profitability. ### Related Stocks - [FLD.US](https://longbridge.com/en/quote/FLD.US.md) - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [RIOT.US](https://longbridge.com/en/quote/RIOT.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [CONI.US](https://longbridge.com/en/quote/CONI.US.md) - [COIW.US](https://longbridge.com/en/quote/COIW.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [MRAL.US](https://longbridge.com/en/quote/MRAL.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) - [BTF.US](https://longbridge.com/en/quote/BTF.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [COIG.US](https://longbridge.com/en/quote/COIG.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [MSTX.US](https://longbridge.com/en/quote/MSTX.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [CONL.US](https://longbridge.com/en/quote/CONL.US.md) - [RIOX.US](https://longbridge.com/en/quote/RIOX.US.md) - [BTCHKD.VAHK](https://longbridge.com/en/quote/BTCHKD.VAHK.md) - [BTCUSD.VAHK](https://longbridge.com/en/quote/BTCUSD.VAHK.md) - [FLDDU.US](https://longbridge.com/en/quote/FLDDU.US.md) - [FLDDW.US](https://longbridge.com/en/quote/FLDDW.US.md) ## Related News & Research - [Galaxy Digital Secures One of America’s Toughest Crypto Licences to Serve New York Institutions](https://longbridge.com/en/news/286847648.md) - [Robinhood's (HOOD) Crypto Revenue Collapsed. 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