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Fold Holdings, a bitcoin fintech company, sold $45 million worth of $BTC and applied the proceeds to pay off its collateralized debt in full, the company disclosed.
Shares surged more than 70%, with intraday prints reaching as high as 160% at the peak, as markets interpreted the move as a decisive balance-sheet reset.
Liquidation Converts Treasury Asset Into Liability Reduction The $45 million bitcoin sale converts a treasury position directly into liability elimination.
Collateralized debt—borrowings secured against pledged assets—carries ongoing servicing costs and can create forced-liquidation exposure when the underlying collateral's value fluctuates.
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