Fold Holdings to Pursue Reverse Split After Selling 832 BTC

Fold Holdings (FLD) has sold 832 bitcoins (BTC) in the first half of this year to reduce debt and pursue a reverse split to maintain its NASDAQ listing. The reverse split ratio is being considered between 1-for-2 and 1-for-50. As of June 30, the investment bitcoins are valued at 194, with an estimated value of $11.4 million (approximately 1.62 billion KRW), while the compensation bitcoins total 77, valued at $4.5 million (approximately 640 million KRW). In February, 200 bitcoins were sold for about $14.4 million (approximately 20.4 billion KRW), and in June, 632 bitcoins were sold for $44.7 million (approximately 63.3 billion KRW). Of this, $20 million (approximately 28.3 billion KRW) was used to repay credit obligations, and the remainder was kept as cash. As of June 30, cash and cash equivalents amount to $28.4 million (approximately 40.2 billion KRW), with net working capital at $17.8 million (approximately 25.2 billion KRW). Fold received a notification from NASDAQ on July 14 regarding the failure to meet the minimum bid requirement of $1, and to recover this, it must maintain a price above $1 for 10 consecutive trading days. The preliminary proxy statement released on August 7 includes a proposal to grant authority for a reverse split, subject to shareholder approval. A reverse split reduces the number of shares and increases the price per share, which does not guarantee an increase in stock price and may negatively impact liquidity. The decision on whether to implement the reverse split and the final ratio will be determined by the board after shareholder approval. The initial grace period for recovering NASDAQ's minimum bid requirement is until January 11, 2027.

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