Key insights
- Fold secured a $150M credit facility to expand its Bitcoin rewards credit card program. This expansion could drive increased adoption of Bitcoin and related financial services, potentially benefiting companies involved in cryptocurrency transactions and payment processing. However, the direct impact on broader US equities is likely limited.
Fold Holdings Inc. (FLD) entered into a four-year senior secured revolving credit facility with Encina Lender Finance LLC, the company announced. The facility includes an uncommitted accordion feature providing for a maximum facility size of $150 million.
The credit facility is secured by consumer credit card receivables and will support continued origination volume for Fold’s bitcoin rewards credit card program. The company stated the facility will extend the runway of its card program without equity dilution.
Fold has begun issuing its Bitcoin Credit Card to a portion of its waitlist members and plans to expand the rollout to additional members in scheduled batches over the coming weeks and months. The card offers up to 4% back in bitcoin rewards, combining a 1.5% base rate with behavior-based boosts and targeted offers.
The credit card operates on the Visa network and is powered by Stripe Issuing. It can be used at 175 million Visa-accepting merchants. Cardholders can pay their bills with bitcoin and earn an additional 0.5% back on that payment. The card integrates with the Fold App for real-time spending and rewards tracking.
"Securing this facility from Encina Lender Finance gives us the capital to meaningfully expand the distribution of the Fold Credit Card," said Will Reeves, chairman, CEO and co-founder of Fold.
Encina Lender Finance is a specialty finance private credit investment firm that provides senior credit facilities to emerging and established specialty finance companies. The firm operates from offices in Atlanta, Dallas, Los Angeles, New York, and San Francisco.
Fold describes itself as a bitcoin financial services company that provides tools for individuals to earn, save and spend bitcoin through everyday financial products.