The company stated it made an agreement to sell up to $250 million in newly issued shares to finance its Bitcoin acquisition strategy. However, the announcement also clarified that there’s no compulsion for the company to utilize the facility. It also has control over the timing and amount of any drawdown, suggesting no coins were bought at the time of the announcement.

Fold follows in the footsteps of other crypto corporate treasury firms like 21 Capital and Nakamoto. These firms, taking inspiration from Michael Saylor’s BTC acquisition vehicle, Strategy, are fueling their purchases through private placements. This move effectively transforms Fold’s stock into a leveraged bet on Bitcoin’s price.

Founded in 2019, Fold started as a wallet company but has since broadened its services to include more financial products. These include the Fold Card – a debit card providing Bitcoin cashback rewards – and a Bitcoin treasury strategy. Fold has undertaken at least one other convertible note agreement to acquire 475 BTC.

As per Bitcoin Treasuries, Fold currently holds roughly 1,488 BTC, valued at approximately $157.23 million. This makes it one of the larger publicly traded Bitcoin treasury firms. Fold made its public debut in 2024 through a SPAC merger with FTAC Emerald Acquisition Corp., traded on Nasdaq. It held around 1,000 BTC at the time of its pre-money valuation of $365 million.

On Tuesday, FLD was trading at $4.71, a slight increase of 0.43% from around $4.31 at market open.

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