Fold Holdings Reports 44% Revenue Growth to $7.1 Million, Faces Increased Operating Losses

Fold Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated net revenues of $7.1 million, marking a 44% increase from $4.9 million in the same period last year. This growth was primarily driven by a 41% rise in banking and payment revenues, which reached $6.9 million, largely due to increased merchant offers. However, the company also faced substantial operating expenses totaling $16.6 million, up 187% from $5.8 million a year earlier, leading to an operating loss of $9.5 million compared to a loss of $854,728 in the prior year.

The filing highlighted a notable increase in the company's employee headcount, which rose to 35 from 22 year-over-year, contributing to a significant rise in compensation and benefits expenses. Additionally, professional fees surged to $1.8 million, reflecting costs associated with the company's transition to a public entity following its merger with FTAC Emerald Acquisition Corp. in February 2025. The company also reported a net loss of $48.9 million for the quarter, a substantial increase from a loss of $945,046 in the previous year, largely attributed to losses on digital assets and changes in the fair value of convertible notes.

In terms of strategic developments, Fold Holdings has been actively expanding its product offerings. The company announced plans to launch a bitcoin-rewards credit card and a bitcoin gift card, which are expected to enhance user engagement and attract new customers. As of March 31, 2025, Fold held approximately 1,490 bitcoin in its Investment Treasury, valued at $123 million, with 800 bitcoin restricted as collateral for convertible notes. The company anticipates that its existing cash and digital assets will be sufficient to fund operations for the next year.

Operationally, Fold reported a total of over 609,000 active accounts, with more than 17,000 new accounts added during the quarter. The company also achieved a monthly transaction volume averaging over $84 million, reflecting its growing user base and engagement. Despite the challenges posed by increased operating costs and market volatility, Fold Holdings remains focused on its long-term strategy of integrating bitcoin into everyday financial services, positioning itself as a key player in the evolving landscape of digital finance.

Looking ahead, Fold Holdings aims to continue its momentum by investing in marketing and expanding its product suite. The company plans to allocate approximately $3 million for traditional marketing strategies in 2025, significantly up from $300,000 in 2024. Management believes that these efforts, combined with the anticipated launch of new products, will drive revenue growth and enhance the company's market position in the competitive financial services sector.