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Introduction & Market Context
Fold Holdings Inc (NASDAQ:FLD) released its Q2 2025 earnings presentation on August 12, highlighting a 59% year-over-year revenue increase and a surprise profit, largely driven by gains from its bitcoin treasury. Despite these positive results, the stock continues to trade near the lower end of its 52-week range, closing at $3.33 on September 8, 2025, significantly below its 52-week high of $14.00.
The cryptocurrency-focused financial services company has been expanding its product offerings while accumulating bitcoin as part of its treasury strategy, a move that contributed substantially to its quarterly profitability through fair value gains.
Quarterly Performance Highlights
Fold Holdings reported Q2 2025 revenue of $8.2 million, representing a 59% increase compared to the same period in 2024. The company posted a net profit of $13.4 million for the quarter, a remarkable 679% improvement from the $2.3 million loss in Q2 2024. However, adjusted EBITDA remained negative at -$4.7 million, worsening by 301% year-over-year.
As shown in the company’s quarterly highlights, Fold has grown its user base to over 615,000 total accounts, with approximately 80,000 verified accounts. The company added more than 10,000 new customer accounts during the quarter and secured $250 million in financing.
The year-to-date figures paint a more challenging picture, with a net loss of $35.5 million for the first six months of 2025, representing a 986% increase in losses compared to the same period in 2024. This suggests that while Q2 showed improvement, the company continues to face significant operational challenges.
Transaction volumes have shown strong growth, reaching $265 million for the quarter, a 124% increase year-over-year. This growth in transaction activity indicates increasing engagement from Fold’s user base.
Bitcoin Treasury Strategy
A key component of Fold’s business strategy is its bitcoin treasury, which significantly impacted the company’s financial results. As of Q2 2025, Fold holds 1,492 bitcoin in its investment treasury, with a Bitcoin Net Asset Value (NAV) of $160 million against a market cap of $198 million.
The company reported a $37 million fair value gain from its bitcoin treasury in Q2 2025, which was the primary driver behind the quarterly profit. With 71.1 million fully diluted shares outstanding, this translates to approximately 2,097 satoshis (the smallest unit of bitcoin) per share.
Fold’s capital market strategy revolves around accumulating more bitcoin through a combination of operating cash flows and strategic capital raises. The company stated it will pursue capital raises for bitcoin only when accretive to shareholders, measured by increasing satoshis per share.
Strategic Initiatives
Fold is expanding its product lineup with three main offerings: Bitcoin Trading & Custody, Bitcoin Rewards Credit Card, and Bitcoin Gift Cards. The company is opening its exchange to an expanded user base and enhancing funding options.
The Bitcoin Rewards Credit Card, which offers 2% unlimited rewards and is positioned as the first bitcoin rewards credit card on the Visa network, has approximately 75,000 people on its waitlist, indicating strong consumer interest in this product.
Bitcoin Gift Cards represent a new distribution channel for bitcoin financial services. Currently available on foldapp.com and other online retailers, these gift cards are expected to be available in retail stores across the US soon, serving as a mass market customer acquisition strategy.
To support this initiative, Fold has established partnerships with Lolli, Blackhawk Network, Giftcards.com, and Tillo, which should help expand the distribution of its Bitcoin Gift Cards.
Forward-Looking Statements
Looking ahead, Fold expects its total 2025 revenues from legacy product lines to be between $34-42 million. The company noted that year-to-date revenues through June 30, 2025, were $15.3 million, representing a 52% year-over-year increase.
Additional revenue contributions from the Fold Bitcoin Gift Card and Fold Credit Card are expected to vary depending on the timing and success of full product launches. The company anticipates that Q4 will be its seasonally highest volume and revenue quarter due to consumer spending and gifting behaviors.
While Fold’s Q2 2025 results show promising revenue growth and a surprise profit driven by bitcoin appreciation, the company continues to face challenges with operational profitability as evidenced by its worsening adjusted EBITDA. The stock’s current trading level near its 52-week low suggests that investors remain cautious about the company’s long-term profitability and its heavy reliance on bitcoin appreciation for financial results.
As Fold continues to expand its product offerings and user base, investors will be watching closely to see if the company can translate its growing transaction volumes and user engagement into sustainable operational profitability beyond bitcoin treasury gains.
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