Fold (FLD.US) reverse stock split to preserve the case, and concerns about the capital chain surfaced after 832 BTC debt was repaid

According to WooFunai, Bitcoin financial services company Fold (FLD.US) is seeking a 1:50 reverse stock split authorization to deal with the stock price compliance crisis faced by the NASDAQ 100 Index in an attempt to reshape nominal stock prices without consuming core assets.

This capital operation aims to resolve outstanding issues of eligibility for listing, but the shrinking Bitcoin reserves behind it have raised deep questions about the market's ability to raise funds for day-to-day operations.

Judging from the asset structure, Fold's balance sheet shows complex hedging characteristics. As of the end of the reporting period, its rewards account held 77 bitcoins worth 4.5 million dollars, which is exactly equal to the customer's reward debt, and the two are economically irreplaceable. If other reserves are included, a total of 271 bitcoins are involved.

However, this static balance is difficult to mask blood loss in dynamic operations. In the first six months of 2026, Fold recorded an operating loss of $15.6 million. To fill the funding gap, the company sold approximately 5.82 million shares through an equity financing plan and received only 7.5 million US dollars in cash.

Data compiled by WooFunai shows that this model, which relies on equity dilution rather than profit from the main business, makes further use of investment funds a potential financing risk rather than an inevitable choice.

Cash flow pressure forced Fold to dispose of core assets on a large scale in the first half of the year. In February, the company sold 200 bitcoins and returned 14.4 million US dollars; in June, it accelerated monetization, sold 632 bitcoins, and obtained 44.7 million US dollars. Among them, 20 million US dollars of sales proceeds in June were earmarked to repay credit lines secured by Bitcoin, and the remaining 24.7 million US dollars were converted into cash reserves.

It is worth noting that the 500 bitcoins previously returned to an investor were a debt settlement act, did not generate sales revenue, and were not included in the total sales volume of these 832 bitcoins. As of June 30, Fold's book cash and cash equivalents were US$28.4 million, but it is still questionable whether this capital can support subsequent operations.

The hard threshold for listing compliance is that the stock price must remain at or above $1 for 10 consecutive trading days. If other exchange conditions are met, Fold may seek a 180-day buffer period. Currently, the company is seeking shareholders' authorization to implement a reverse split ranging from 1:2 to 1:50; the exact ratio has not yet been selected. Even if the split takes effect to temporarily avoid the risk of delisting, the core conflict remains unresolved: on the premise of protecting the remaining 194 bitcoins in the investment vault as of June 30 from further erosion, how Fold will raise funds for continued operations is still an unresolved key variable.