Fold Holdings, Inc. (NASDAQ:FLD) saw its stock spike as much as 21% before settling up 4%, after announcing a major equity facility aimed at bolstering its bitcoin reserves. The company, which positions itself as the first publicly listed financial services provider focused on bitcoin, has arranged a $250 million equity purchase facility to support its treasury strategy.
Under the terms of the agreement, Fold will have the option—but not the obligation—to issue and sell up to $250 million in new common stock. The company will maintain full discretion over the timing and size of any issuances, though they will be subject to specific limitations.
Before Fold can draw on the facility, it must file a registration statement with the U.S. Securities and Exchange Commission (SEC) to cover the resale of the offered shares. That registration must also be declared effective by the SEC. The upcoming sales are expected to proceed under a private placement structure, utilizing available exemptions from SEC registration requirements.
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, acted as the exclusive placement agent in securing the funding agreement.
The sharp rise in Fold’s stock reflects strong market approval of its intention to increase bitcoin holdings, tapping into a growing trend among public companies using bitcoin as a strategic treasury asset. This comes as bitcoin prices have experienced a notable rally in recent months, enhancing the appeal of crypto-based balance sheet strategies.