Company Profile: Fold Holdings, Inc.
Background
Fold Holdings, Inc., founded in 2019, is a pioneering bitcoin financial services company dedicated to expanding access to bitcoin through a comprehensive suite of consumer financial products. The company aims to create a modern financial services platform that allows consumers to accumulate, save, and use bitcoin to achieve their daily and long-term financial goals. Fold offers an FDIC-insured checking account, a Visa prepaid debit card, bill payment services, and an extensive catalog of merchant reward offers. Additionally, Fold partners with third-party service providers to offer bitcoin exchange and custody services, integrating bitcoin into traditional financial services to serve as a key point of entry for consumers to engage with and incorporate bitcoin into their everyday lives.
Key Strategic Focus
Fold's strategic focus centers on providing a seamless integration of bitcoin into everyday financial activities. Core objectives include:
- Comprehensive Financial Services: Offering products such as FDIC-insured checking accounts, Visa prepaid debit cards, bill payments, and a wide range of merchant reward offers.
- Bitcoin Integration: Enabling users to earn, accumulate, and utilize bitcoin through various services, including rewards programs and low-to-zero fee bitcoin buying and selling options.
- User Engagement: Building a user base that actively engages with bitcoin in their financial transactions, fostering a positive brand image and trust.
- Product Innovation: Continuously developing new products, such as the upcoming bitcoin-rewards credit card, to enhance user experience and expand market reach.
Financials and Funding
As of December 31, 2024, Fold reported:
- Total Revenue: $23.75 million.
- Operating Loss: $5.81 million.
- Net Loss: $65.09 million.
The net loss is primarily attributed to fair value adjustments on the company's SAFEs totaling $91.5 million.
Funding History
Fold has raised a total of $36.5 million over five funding rounds:
- September 2019: $3.5 million.
- March 2020: $1.5 million.
- August 2020: $1 million.
- April 2021: $17.48 million.
- May 2021: $13 million (Series A).
Notable investors include Bessemer Venture Partners, Craft Ventures, Slow Ventures, M13, and ATW Partners.
Pipeline Development
Fold's product pipeline includes:
- Bitcoin Rewards Credit Card: Expected to launch in 2025, this product aims to expand Fold's existing bitcoin-rewards offerings.
- ACH Bill Payment Rewards: Launched in July 2024, this feature allows users to earn up to 1.5% back in bitcoin on mortgage, rent, and other bill payments.
Technological Platform and Innovation
Fold's technological platform includes:
- Bitcoin Custody and Trading: Enables users to buy bitcoin with low-to-zero fees and withdraw instantly.
- Rewards Network: Offers bitcoin rewards on all transactions, with up to 20% back at over 100 million top merchants.
- Debit Card and FDIC Cash Account: Provides a Visa prepaid debit card linked to an FDIC-insured checking account, allowing users to earn up to 1.5% back in bitcoin on eligible purchases.
Leadership Team
- William Reeves: Founder and Chief Executive Officer.
- Corbin Pon: Chief Operating Officer and Co-founder.
- Chris Martin: Chief Technology Officer.
- Matthew McManus: Chief Operating Officer.
- Nicolleta Goncalves: Vice President of Risk and Compliance.
- Thomas Dickman: Chief Technology Officer.
Competitor Profile
Fold operates in a competitive landscape with several key players:
- StormX: Offers cashback rewards in cryptocurrency.
- Lolli: Provides bitcoin rewards for online shopping.
- Pei: Enables users to earn cashback in bitcoin on everyday purchases.
- BitPay: Offers bitcoin payment processing services.
- Flexa: Provides a payment network for digital assets.
- Paxful: Peer-to-peer bitcoin marketplace.
- Bitfinex: Cryptocurrency exchange platform.
- Coinpayments: Payment gateway for cryptocurrencies.
- BitGo: Digital asset custody and security services.
- Coinify: Payment processing for digital currencies.
- itBit: Cryptocurrency exchange.
- Lykke: Global cryptocurrency exchange.
- GoCoin: Payment gateway for digital currencies.
- BitRewards: Loyalty program for cryptocurrency.
- Honey: Online shopping rewards platform.
- Blockchain: Blockchain technology company.
- Tech Bureau: Blockchain technology company.
- Ebates: Cashback and rewards platform.
- BitMEX: Cryptocurrency exchange.
- Poloniex: Cryptocurrency exchange.
Strategic Collaborations and Partnerships
Fold has established strategic partnerships with:
- Visa: To launch the Fold Visa Prepaid Debit Card, enabling users to earn bitcoin rewards on purchases.
- Sutton Bank: To offer FDIC-insured checking accounts.
- Marqeta: To power the modern card-issuing platform for Fold's payment cards.
Operational Insights
Fold's operational strategy focuses on:
- User Acquisition: Leveraging organic growth through word-of-mouth, partner co-marketing, and active social media engagement to maintain low customer acquisition costs.
- Product Expansion: Continuously developing new products, such as the upcoming bitcoin-rewards credit card, to enhance user engagement and attract new customers.
- Market Positioning: Positioning itself as a leader in integrating bitcoin into everyday financial services, differentiating from traditional financial institutions and other cryptocurrency companies.
Strategic Opportunities and Future Directions
Fold's strategic roadmap includes:
- Product Diversification: Expanding offerings to include credit cards, loans, and business accounts to enhance customer lifetime value.
- Geographic Expansion: Exploring opportunities for global expansion to tap into new markets and increase addressable market size.
- Strategic Acquisitions: Pursuing acquisitions that enhance scale, enable entry into new verticals, and add complementary capabilities to the platform.
Contact Information
- Website: foldapp.com
- Social Media: Twitter, LinkedIn
- Headquarters: Phoenix, Arizona, United States
