Fold has officially launched its highly anticipated Bitcoin rewards credit card this month, marking a significant milestone for the company. CEO Will Reeves has emphasized that this consumer card is merely the first step in a broader strategy aimed at expanding the company’s offerings in the financial technology space. According to Reeves, the next phase will focus on delivering Bitcoin payroll, treasury, and corporate cards to business owners, many of whom already utilize Fold’s services for personal finance.
After navigating through a challenging seven-year regulatory landscape, Reeves noted that the industry has overcome many of its initial hurdles, positioning itself for growth in the business-to-business (B2B) segment among its existing customer base. This strategic pivot, he explained during a recent interview with TheStreet Roundtable, reflects a natural evolution of their service offerings.
Fold has kicked off the rollout of its credit card to waitlist members in batches, providing cardholders with the ability to earn up to 4% back in Bitcoin on purchases, alongside a base rewards rate of 1.5%. To facilitate this expansion and scale the program efficiently, Fold secured a formidable $150 million asset-backed revolving credit facility from Encina Lender Finance. This backing enables the company to grow the credit card program without diluting shareholder value.
Reeves shared insights into the long journey leading to the current launch. He revealed that the idea for a Bitcoin credit card was conceptualized as early as 2019. However, numerous challenges—including shifting regulatory requirements, operational setbacks, and extended bear markets—delayed its entry into the market. These hurdles included instances where partners lost confidence in Bitcoin, further complicating development.
With the consumer card now active, Fold is turning its attention to the business sector. Reeves highlighted that many retail clients are also business owners seeking similar financial tools for their companies. Fold plans to tailor its offerings for this demographic, allowing businesses to earn rewards and purchase Bitcoin much like individual consumers.
One key initiative Fold has already launched is its Bitcoin Bonus Program. This program allows employers to convert payroll bonuses into Bitcoin without requiring changes to existing payroll systems. The fast-food chain Steak ‘n Shake, which employs over 10,000 people, has become a flagship partner in this endeavor.
Additionally, Reeves credited a shift in the regulatory environment and the stability of partnerships as crucial factors that have paved the way for future developments. He noted that unlike in the past, many traditional financial institutions now remain committed during periods of Bitcoin market volatility, a significant change indicating growing acceptance within the financial services landscape.
As a public company catering to Bitcoin financial services, Fold is keen on working collaboratively with traditional finance partners rather than against them. Reeves emphasized that the remaining compliance challenges are largely centered on ensuring adherence to traditional finance regulations, signaling a new era for Bitcoin integrations in the financial system.
