Fold secures $150M credit facility to scale Bitcoin rewards card program

Fold Holdings secured a $150 million credit facility from Encina Lender Finance to fund the national rollout of its Bitcoin rewards credit card, the company said Wednesday.

"Securing this facility from Encina Lender Finance gives us the capital to meaningfully expand the distribution of the Fold Credit Card," Will Reeves, chairman, chief executive officer and co-founder of Fold, said.

The four-year senior secured revolving credit facility, backed by consumer credit card receivables, includes an uncommitted accordion feature allowing the company to draw up to $150 million. Fold expects the capital to extend the card program's runway without diluting equity. The company has begun issuing the Fold Bitcoin Credit Card to waitlist members in batches and is shipping physical cards to active holders.

The card, issued on the Visa network and powered by Stripe Issuing, offers up to 4% bitcoin back on eligible purchases — combining a 1.5% unlimited base rate with behavior-based boosts and an extra 0.5% when cardholders pay their bill using bitcoin. It can be used at about 175 million Visa-accepting merchants. Fold, the first publicly traded bitcoin financial services company, aims to use the card as a bridge between traditional credit and the bitcoin economy.

The Fold Bitcoin Credit Card extends the company's existing bitcoin rewards model into a full credit card product. Rewards are denominated exclusively in bitcoin and integrated with the Fold App, where users can track spending and rewards in real time. The card includes instant controls such as locking and unlocking, fraud alerts, and the ability to start spending immediately with a virtual card via Apple Pay or Google Pay.

Geoff Beard, chief executive officer and chief investment officer of Encina Lender Finance, said the partnership fits the firm's expertise at the intersection of specialty finance, financial technology and asset-based private credit investing.

"Consumers want more choice in how they earn and use rewards, and digital assets are becoming part of that," Dan Roesbery, vice president of global partnerships and crypto go-to-market at Visa, said. "Fold shows how earning digital rewards everyday can feel simple."

Fold shares fell 7.7% to $1.03 on Wednesday, with trading volume at 206,000 shares — about 1.6 times the 20-day average. The stock has declined roughly 60% over the past year and trades near its 52-week low of $1.00.

The company previously disclosed a $45 million bitcoin-backed credit facility in a securities filing earlier this month. The new Encina facility is secured by consumer credit card receivables rather than bitcoin, reflecting a shift in how Fold is financing its card program's growth.

This article is for informational purposes only and does not constitute investment advice.