Fold Secures $150 Million Credit Facility to Expand Crypto Rewards Business

Fold Holdings has made significant strides in the fintech industry with its innovative approach to cryptocurrency-based financial services.

The company has secured a $150 million credit facility from Encina Lender Finance, which will enable Fold to expand its Bitcoin rewards credit card business nationwide. This move positions Fold as a major player in the market, offering customers up to 4% Bitcoin rewards on eligible purchases.

The credit facility is structured as a senior secured revolving line, backed by consumer credit card receivables. This means that as cardholders spend and accumulate balances, those future payments serve as collateral for the loan.

This non-dilutive financing option allows Fold to grow aggressively without issuing new shares, preserving equity for existing shareholders. The company's track record in processing over $3.1 billion in transactions since 2019 and paying out over $83 million in Bitcoin rewards to users demonstrates its viability in the market.