By Rayk Riechmann
From banks to hedge funds to mom-and-pop investors, the Bitcoin (BTC) boom has garnered support from virtually every direction, with President Donald Trump this week vowing to create a strategic crypto reserve for the U.S. government. What if investors could bet on growth across the new Bitcoin economy while also getting direct exposure to the cryptocurrency itself?
Meet Fold Holdings, Inc. (NASDAQ: FLD), the first publicly-traded financial services company that combines both Bitcoin ownership and business lines tied to the increasing popularity of the cryptocurrency among investors, financial institutions and everyday shoppers. Through its significant holdings of over 1000 BTC in treasury, the company provides a valuation floor and opportunity to ride further appreciation of the cryptocurrency. Additionally, by providing BTC rewards for retail shopping transactions, trading services, and efficient custody solutions, the company is poised to profit from a broadened interest in cryptocurrencies and an improving regulatory framework.
Fold attracts customers with a unique positioning between traditional banking services and the digital asset economy – all inside the Fold App. The comprehensive suite of consumer financial products such as an FDIC-insured checking account and a Visa prepaid debit card, combined with a rewards program offering up to 1.5% back in BTC, has established the company as a one-stop shop for the growing cryptocurrency community. Importantly, customers need only spend regular fiat currency on their debit cards to reap BTC rewards, making it an attractive product for both crypto fanatics and newcomers alike.
Through numerous strategic partnerships, customers can win BTC rewards while making everyday purchases at major retailers like Amazon, Home Depot, Doordash, Airbnb, Chevron and many more. The strategy is working: Fold has already build a loyal customer base of 580,000 users with high engagement and retention rates, while maintaining a below-average customer acquisition cost (just $10 per customer vs. over $300 for traditional financial services). This ecosystem of established partnerships would be difficult and costly for competitors to replicate. High barriers to entry and a credible “built by Bitcoiners for Bitcoiners” approach cement the company’s position in a market known to face skepticism.
The company’s success translates to impressive financial metrics. Fold’s revenue is expected to grow 150% to $61.6 million in 2025 as its custody and trading revenue climbs to $26 million, the banking and payments segment reaches $33 million and the credits and loan segment starts generating revenue. Based on that forecast the company trades at an enterprise value of less than 4 times 2025 sales, sharply lower than peers like Coinbase, which trades at 8 times – a 100% premium.
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Fold has a solid balance sheet with $163 million in cash and Bitcoin as of the latest update. As BTC potentially rises in value, the balance sheet may naturally get even larger.
Senior management members bring many years of experience in crypto and traditional finance. Will Reeves, Fold’s founder and CEO, has valuable product development experience and BTC-specific knowledge. Prior to founding Fold in 2019, he served as Head of Payments at Thesis, Inc., where he spearheaded the development and strategic direction of the Bitcoin venture studio’s payment and financial technologies portfolio. The board also boasts Bracebridge H. Young Jr., former CEO of Mariner Investment Group and former Partner at Goldman Sachs.
For equity investors, Fold offers attractively priced exposure to the BTC market – but also an unusual hedge against crypto’s notorious volatility. While BTC will surely whip around, investors should be shielded from extreme swings thanks to Fold’s diversified operating activities build around the crypto economy.
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