Core Insights - Stonegate Capital Partners has initiated coverage on Fold Holdings Inc. (NASDAQ: FLD) highlighting its strong financial performance and growth momentum [1] Financial Performance - Fold Holdings reported revenue of $7.4 million, representing a 41% year-over-year increase, with a net income of $0.6 million [1][7] - The company achieved a total transaction volume of $265 million for the quarter, with over 10,000 net new accounts and more than 3,000 new verified accounts [1] - As of Q3 2025, new accounts increased by 2.1% year-over-year, while transaction volumes rose approximately 41% year-over-year [1] Growth and Operational Efficiency - The company maintained nearly 50% top-line growth compared to the previous year, with expectations for continued strong growth into Q4 [1] - Management noted that headcount has roughly doubled year-over-year while maintaining margins, indicating early operating leverage [1] - The quarter demonstrated improving operating leverage with focused spending on distribution and product [1] Product Development and Market Expansion - Product momentum is evident as the Visa and Stripe credit card approaches launch, with a waitlist exceeding 75,000 [7] - The Bitcoin Gift Card is expanding to approximately 2,000 Kroger locations, supported by a promotion with Steak 'n Shake [7] - The company has strengthened its liquidity with a new $45 million revolving credit facility, alongside an existing $250 million equity facility and a treasury of 1,526 BTC [7]

Financial Data and Key Metrics Changes - Total year-to-date revenues through September 30th were $22.7 million, reflecting an approximately 48% increase over the first nine months of 2024 [18] - Total year-to-date transaction volumes through September 30th were $753 million, representing an approximately 74% increase versus the prior year period [18] - Q3 net revenues were $7.4 million, up 41% year over year, with transaction volumes of $235 million, up 43% over the same quarter [7][18] - GAAP net income for Q3 was just under $1 million, compared to a net loss of $62.3 million in Q3 2024 [19] Business Line Data and Key Metrics Changes - The company reported strong growth in its legacy businesses, with significant contributions expected from the upcoming Bitcoin Gift Card and Credit Card [18] - The Bitcoin Gift Card is now available in 2,000 Kroger locations, with high customer engagement anticipated during the holiday season [11][29] - The upcoming Bitcoin Rewards Credit Card is expected to return up to 3.5% back on every purchase, with potential for up to 10% back with top brands [8][9] Market Data and Key Metrics Changes - The company noted that 2025 has been a seminal year for Bitcoin, with increasing institutional interest and regulatory improvements [5] - Changing demographics in the U.S. are expected to lead to nearly $80 trillion moving into the hands of millennials, who are anticipated to be larger buyers of Bitcoin than previous generations [7] Company Strategy and Development Direction - The company aims to position itself as a leading provider of financial services centered around Bitcoin, leveraging partnerships with Visa and Stripe for its credit card [8] - The strategy includes expanding the distribution of the Bitcoin Gift Card and exploring additional financial service lines such as loans and retirement plans [14] - The company is focused on creating a synergistic user experience across its product offerings, including banking and exchange products [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming holiday season, which is expected to drive significant transaction volumes and revenues [65] - The company is closely monitoring regulatory changes and industry opportunities to enhance its product offerings [14] - Management highlighted the importance of the credit card as a transformative product for user acquisition and revenue generation [57] Other Important Information - The company currently holds 1,526 Bitcoin valued at approximately $154 million, representing a 53% increase in holdings since going public [14] - The company has a healthy balance sheet with cash and cash equivalents of $6.7 million and positive working capital of $6.1 million as of September 30th [22] Q&A Session Summary Question: Can you share early data and interest regarding the Bitcoin Gift Card? - Management noted high excitement and healthy volume from the rollout, with significant sales expected during the holiday season [29][30] Question: What does the expansion of the Bitcoin Gift Card look like? - The company is exploring various retail partnerships and promotional opportunities, including loyalty programs and employer incentives [33][34] Question: How is the demand for the credit card trending? - The waitlist for the credit card has surpassed 80,000, indicating strong demand and interest from both existing and new customers [39][40] Question: How will customer acquisition and marketing spend change with new products? - The gift card is becoming a successful customer acquisition tool, with negative acquisition costs, and the company plans to activate paid marketing channels as new products launch [44][45] Question: Can you elaborate on the capital raise and strategic opportunities? - The company is utilizing a revolving credit facility to access the value of its Bitcoin holdings without selling them, aligning with long-term growth strategies [53] Question: What is the strategy to convert active accounts into verified users? - The upcoming credit card is expected to be key in converting existing users into deeper product lines, leveraging the current user base [80]