Fold CEO says partners stay on board despite 50% Bitcoin drop

Fold announced that its Bitcoin‑reward credit card is now live for wait‑list members, and CEO Will Reeves emphasized that the biggest hurdle—partner confidence—has been cleared even as Bitcoin prices have slumped nearly half from their October 2025 highs [1].

The consumer card, which offers up to 4% back in Bitcoin and a base rate of 1.5%, is being funded by a $150 million asset‑backed revolving credit facility from Encina Lender Finance, allowing Fold to scale without diluting shareholders [1]. Reeves traced the product’s origins to a 2019 model and a seven‑year regulatory grind, noting that compliance snags and bear markets previously caused partners to pull back, but the current regulatory tone is “clearer than it’s ever been” [1].

With the card now in rollout, Fold’s next focus is B2B. Reeves said retail users are already asking for business tools, and the company has launched a Bitcoin Bonus Program that lets employers convert payroll bonuses into Bitcoin without changing payroll systems—Steak ’n Shake, with over 10,000 workers, is the flagship partner [1]. This move aims to embed Fold’s services deeper into its existing customer base, leveraging the overlap between individual users and small‑business owners.

Financially, the company reported a 21% year‑over‑year revenue decline in Q1 2026, driven by a 31% drop in transaction volumes as Bitcoin prices fell about 50% [2]. Despite the revenue hit, Fold improved its net loss by 40% year‑over‑year, cutting operating expenses by 19% and maintaining positive contribution margins across product lines [2]. The stock edged up 0.68% in after‑hours trading to $1.49, reflecting modest investor optimism amid the volatility [2].

Reeves’ claim that “our partners don’t bat an eye when Bitcoin drops 50%” suggests a shifting risk calculus for banks, payment processors, and lenders that may now be willing to underwrite crypto‑linked products even in deep drawdowns. The open question is whether this newfound partner resilience will translate into sustained transaction volume growth once Bitcoin stabilizes, or if the volatility will continue to suppress demand for Fold’s services.