Fold Holdings Faces Bitcoin Market Headwinds in Q1 2026, but Platform Strategy Advances

Fold Holdings Inc. (NASDAQ: FLD) reported first-quarter results that reflected bitcoin-market-driven pressure on transaction activity, but management maintains that the quarter did not alter the core thesis, according to an update from Stonegate Capital Partners. The company's revenue declined 21.1% year-over-year to $5.6 million as transaction volume fell 32% to $172 million. However, verified accounts approached 85,000 with close to 2,000 net additions, indicating continued user engagement.

Net loss for the quarter was $(29.2) million, and adjusted EBITDA was $(5.8) million. GAAP results were affected by bitcoin treasury fair value changes and financing-related items. Operating expenses declined 19% year-over-year to $13.4 million, supported by lower direct costs, lower stock-based compensation, and lower professional fees. Management noted that February marked the bottom across most core KPIs, with early improvement as bitcoin recovered.

The first quarter advanced Fold's transition toward platform-led monetization, with account growth, opex discipline, and concurrent product launches supporting a broader revenue model beyond transaction activity. The credit card execution is the primary catalyst for fiscal year 2026. With over 1,000 cards live and an approximately 80,000 waitlist, cohort spend, engagement, credit performance, and funding capacity will drive the setup.

Capital structure simplification improves strategic flexibility. Extinguishing the convertible notes while retaining bitcoin treasury exposure strengthens Fold's ability to scale credit, gift card, and business channels. The company's broader platform strategy moved closer to commercial validation despite the market-driven pressure in transaction-linked activity.

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Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking, equity research and capital raising for public and private companies.