8-K: Fold Holdings Reports 44% Revenue Increase in Q1 2025, Fueled by Bitcoin Treasury Growth

Fold Holdings, a Bitcoin financial services company, announced a 44% year-over-year revenue increase to $7.1 million for the first quarter of 2025, driven by growth in Bitcoin treasury holdings and new product launches.

Summary

• Fold Holdings, Inc. (NASDAQ: FLD) reported its financial results for the first quarter ended March 31, 2025.
• Revenue reached $7.1 million, a 44% increase compared to the same period last year.
• The company's Bitcoin treasury holdings grew to 1,490 BTC, representing a 50% increase from Q4 2024 and a value of over $150 million as of May 13, 2025.
• Fold launched a Bitcoin Gift Card and saw new accounts increase by over 300% year-over-year, with platform volumes up 67%.
• GAAP Net Loss was ($48.9) million, and Adjusted EBITDA (Loss) was ($4.2) million.
• GAAP Loss Per Share was ($1.92), while Adjusted EBITDA (Loss) Per Share was ($0.17).
• Total transaction volume increased by 67% year-over-year to over $250 million.
• The company has over 600,000 total active accounts, adding 17,000 new accounts in the quarter.
• Total verified accounts reached over 76,000, with 5,000 new verified accounts added in the quarter.
• Fold's full-year revenue guidance for 2025 remains unchanged at $61.6 million.
• Marketing expenses are projected to be $3 million, a 10x increase from 2024.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive due to strong revenue growth and strategic initiatives, but tempered by significant net losses and reliance on convertible notes and SAFEs.

Positives

• Revenue increased by 44% year-over-year to $7.1 million.
• Bitcoin treasury holdings grew by 50% to 1,490 BTC, valued at over $150 million.
• New accounts increased by over 300% year-over-year.
• Platform volumes increased by 67% year-over-year.
• The company launched the Fold Bitcoin Gift Card.
• The Fold Bitcoin Rewards Credit Card has a waitlist of 75,000 people.
• The company is expanding its Custody and Trading business.

Negatives

• GAAP Net Loss was ($48.9) million.
• Adjusted EBITDA (Loss) was ($4.2) million.
• GAAP Loss Per Share was ($1.92).
• Adjusted EBITDA (Loss) Per Share was ($0.17).

Risks

• The company's forward-looking statements are subject to risks and uncertainties, including changes in market conditions and the regulatory landscape.
• Failure to realize the anticipated benefits of the business combination could negatively impact results.
• The company faces risks related to downturns, new entrants, and a changing regulatory landscape in the competitive industry.

Future Outlook

Fold Holdings maintains its full-year revenue guidance of $61.6 million for 2025 and plans to launch the Fold Bitcoin Rewards Credit Card later this year. The company is also focused on expanding its Custody and Trading business and increasing its Bitcoin treasury holdings.

Management Comments

• We are pleased to report a strong first quarter, with revenues for the period increasing by 44% versus a year ago, while core KPIs such as Active Accounts and Transaction Volumes were also up, said Fold Chairman and CEO, Will Reeves.
• In particular, we made significant progress on new initiatives that we believe improve the growth prospects for Fold.
• At Fold, we remain committed believers in Bitcoin and see it as central to everything we do.
• Building on our first quarter of 2025, we will continue to seek opportunities to add to our bitcoin holdings and believe in the long-term value proposition of a robust bitcoin treasury strategy.

Industry Context

Fold's focus on integrating Bitcoin into financial services aligns with the growing trend of cryptocurrency adoption and the increasing interest in digital assets. The launch of the Bitcoin Gift Card and expansion of custody services positions Fold to capitalize on the broader market for Bitcoin-related products and services.

Comparison to Industry Standards

• Comparing Fold's performance to other publicly traded Bitcoin-focused companies is difficult due to the limited number of direct competitors.
• Companies like Coinbase (COIN) and Block (SQ) offer some overlapping services, but their business models are broader.
• Fold's revenue growth of 44% is a positive sign, but its significant net loss raises concerns about profitability.
• The company's Bitcoin treasury strategy is similar to that of MicroStrategy (MSTR), which has also invested heavily in Bitcoin.

Related Party Transactions

• The balance sheet includes a 'March 2025 convertible note related party' liability of $52,813,643.
• The cash flow statement includes 'Proceeds from convertible debt received in digital assets related party' of $43,965,525.
• The cash flow statement includes 'Distributions of digital assets for prepaid interest related party' of $2,313,975.

Stakeholder Impact

• Shareholders may be concerned about the significant net loss despite revenue growth.
• Customers will benefit from new products like the Bitcoin Gift Card and expanded custody services.
• Employees may see opportunities for growth as the company expands its operations.

Next Steps

• Launch the Fold Bitcoin Rewards Credit Card later this year.
• Expand the Custody and Trading business by adding enhanced functionality to the platform.
• Continue to seek opportunities to add to Bitcoin holdings.
• Full rollout of the Bitcoin Gift Card to thousands of online and physical locations throughout the US.

Key Dates

Keywords

Bitcoin, Fold Holdings, Financial Results, Revenue, Treasury, Cryptocurrency, Gift Card, Credit Card, EBITDA