Fold Holdings, the first publicly traded bitcoin financial services company, said on Nov. 10 that TikTok Shop has become its largest gift card and customer acquisition channel. The milestone came in a quarter when the company’s total revenue fell 44% from a year earlier.
The Phoenix-based firm, which trades on the Nasdaq under the ticker FLD, reported $4.16 million in revenue for the quarter ended Sept. 30, down from $7.40 million in the same period last year. It posted a net loss of $2.65 million, or 5 cents per share, against net income of $554,242 a year earlier.
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TikTok is now Fold’s biggest customer channel
Fold brought its bitcoin gift card to TikTok Shop in July, becoming the first and only bitcoin gift card sold on the platform. The company said gift card sales drove an approximately 270% increase in custody and trading revenue during the third quarter. It did not specify the period that growth was measured against.
September was a record month for bitcoin gift card sales, and the card holds a 4.7-star rating on TikTok Shop, the company said. Kroger also renewed its commitment to the Fold program.
A shift from transactions to balances
Chairman and CEO Will Reeves called the quarter an inflection point for the company, saying Fold is moving from a business built on transactions to one that earns from customer balances.
"A transaction pays us once. A customer balance earns for us every month it stays on the platform, and it ties that customer more closely to everything else we offer," Reeves said in a statement.
Fold launched Fold Reserve, a stored-value product that unlocks higher rewards tiers, and spending accounts held at Lead Bank, an FDIC-insured institution. It also enabled pass-through bitcoin buying from any linked bank account.
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Thousands of customers have activated the new balance products, bringing millions of dollars in balances onto the platform. The company said those customers hold balances several times larger than its average user.
The credit card waits on a financing partner
The Fold Credit Card expanded early access to about 2,500 cardholders and shifted from a waitlist to an invite system, with a pre-approval flow launching outside the Fold app.
Reeves said a financing partner for the card is expected to be announced shortly, but no agreement has been signed. Such a facility would let the program scale beyond Fold’s own balance sheet.
What the balance sheet shows
Fold ended the quarter with $21.7 million in cash and 247 bitcoin in its treasury. Total operating expenses fell 21% year over year to $10.5 million, and the adjusted EBITDA loss narrowed to $4.5 million from $5.5 million in the second quarter.
Total transaction volume reached $159 million in the quarter. Verified accounts passed 88,500, up 1,500 in the period.
The company extended the maturity of its $13 million note to November 2027 and replaced a $250 million equity line with a $25 million committed equity facility, which it said reduces potential dilution. On Oct. 22, stockholders approved a reverse stock split authorization, one tool available to regain compliance with Nasdaq listing rules before a Jan. 11, 2027 deadline.
Fold was scheduled to host an earnings call at 5 p.m. ET on Nov. 10.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.