Fold Holdings has locked down a four-year, senior secured revolving credit facility with Encina Lender Finance, capped at $150 million. The money is secured by consumer credit card receivables — meaning the company can draw capital as those receivables grow and pay it back as the portfolio turns over. An uncommitted accordion feature lets Fold expand the facility by another $150 million without issuing new shares, sidestepping equity dilution entirely.
The deal at a glance
The facility is a revolver, not a lump sum. That structure matches how Fold’s Bitcoin Credit Card business works: as cardholders spend and carry balances, receivables build up, and Fold can tap the line. When the portfolio cycles, the loan gets paid down. Encina Lender Finance, an independent specialty finance firm with offices across several U.S. cities, specializes in exactly this kind of asset-based lending. The arrangement keeps Fold’s equity untouched — no new tokens, no secondary offerings.
How the card works
The Fold Bitcoin Credit Card runs on Visa and is issued by Celtic Bank via Stripe Issuing. It’s accepted at roughly 175 million merchants worldwide. Cardholders earn a base 1.5% back in bitcoin on all net purchases. That rate can climb to 4% through behavior-based boosts — and there’s an extra 0.5% bonus for anyone who pays the statement balance with bitcoin held in a Fold account. As of Q1 2026, more than 1,000 cards were in circulation. Fold plans to open access in scheduled batches, so the rollout isn’t a flood.
The numbers behind the growth
Fold isn’t growing at breakneck speed yet. Q1 2026 revenues came in at $5.6 million, down 21.1% year-over-year. Transaction volumes fell 32%. The new credit facility gives the company a runway to keep issuing cards and building the receivable base without burning equity. It’s a bet that the card program can scale fast enough to turn those numbers around — and that the receivable quality holds up under market pressure.
Risks to watch
Bitcoin’s price volatility directly affects the reward value for customers, which could hit usage and, by extension, the receivables pool. Broader market shifts also put pressure on consumer credit quality — a downturn could sour the portfolio the loan is secured against. Fold’s reliance on a single credit card product for the facility’s collateral means any stumble in that program ripples straight back to the lender.
Fold plans to roll out card access in scheduled batches over the coming months. How quickly those batches fill — and how the receivable pool performs — will determine whether the accordion feature ever gets used.
