Fold, a Bitcoin financial services company listed on Nasdaq since February this year, has just added 475 BTC (worth approximately $41 million) to its reserves. With this move, the total amount of Bitcoin the company holds has surpassed 1,485 BTC, valued at nearly $130 million at current prices.
Fold's 'MicroStrategy' Strategy
The decision to purchase more Bitcoin by #Fold is not random. The company has adopted the popular financial strategy of Michael Saylor – the founder of MicroStrategy – by issuing convertible bonds to raise funds for accumulating Bitcoin.
Fold's CEO, Will Reeves, emphasizes the importance of Bitcoin in the new financial system:
"We believe that Bitcoin will play a foundational role in the next financial era, and Fold will be a pioneering entity. Maintaining a large Bitcoin reserve not only provides value to shareholders but also helps us develop next-generation financial services based on Bitcoin."
Fold: The First Publicly Listed Bitcoin Company
Fold is not just a Bitcoin accumulation company. It offers a variety of financial services tied to Bitcoin, including debit cards, insured accounts, and bill payment features. Notably, Fold also has a Bitcoin rewards program for customers using its services. As of last month, the company has awarded over $20 million $BTC to users.
The main goals of holding Bitcoin in Fold's reserves are twofold:
Creating value for investorswants exposure to Bitcoin through the company's stock.
Building a Bitcoin-native financial platform, leveraging the held BTC to support new financial products.
Notable Moment: Trump Establishes 'Bitcoin Strategic Reserve'
Fold's move to accumulate Bitcoin comes right after U.S. President #DonaldTrump signed an executive order establishing the U.S. Bitcoin Strategic Reserve. This has sparked much speculation about whether businesses and governments are preparing for a financial scenario based on Bitcoin.
However, Fold's stock (ticker FLD) fell 1.7% at the end of Friday’s trading session, closing at $7.58. This may reflect cautious market sentiment towards the company’s Bitcoin accumulation strategy.
The Future of Fold: Gamble or Opportunity?
Fold has not yet disclosed the average price at which they purchased Bitcoin in the latest round, nor their long-term plans regarding this strategic reserve. However, it is clear that the company is making a big bet on Bitcoin and decentralized financial models.
The question is whether this strategy will help Fold become a second MicroStrategy or if it will be a risky move in a still volatile cryptocurrency market? #anhbacong