Company Overview - Fold Holdings has been officially included in the Russell 2000 index as of December 22, marking it as the first publicly traded Bitcoin financial services firm with over 1,500 BTC in its treasury [2][3] - The company offers a range of products including the Fold App, Fold Bitcoin Gift Card, Fold Debit Card, and an upcoming Fold Bitcoin Rewards Credit Card [2] Market Impact - The inclusion of Fold Holdings in the Russell 2000 is seen as a significant milestone that enhances its visibility among institutional and retail investors, according to the company's CEO [3] - Goldman Sachs analyst Ben Snider predicts that the Russell 2000 could experience upward momentum in early 2026, with expected annual returns of around 10%, which is slightly lower than the S&P 500's projected 12% [3] Industry Context - The Russell 2000 index consists of approximately 2,000 US small-cap stocks, representing about 5-7% of the total US public equity market capitalization, and serves as a benchmark for small-cap investment performance [4] - Fold Holdings is not the first crypto-related company in the Russell 2000; other companies like Marathon Digital Holdings and Riot Blockchain are already part of the index, with these mining firms being top performers in 2023 [5] - Unlike existing constituents, Fold Holdings focuses on consumer-facing fintech services rather than mining operations [6] Regulatory Considerations - The attention surrounding Fold Holdings' inclusion is heightened by MSCI's consideration to exclude companies with digital asset holdings exceeding 50% from its global benchmarks, suggesting these companies resemble investment funds more than operational businesses [7]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported transaction volumes of $235 million, an increase of 43% year-over-year, and net revenues of $7.4 million, up 41% year-over-year [7][18] - Year-to-date revenues through September 30 were $22.7 million, reflecting a 48% increase over the same period in 2024, with total transaction volumes of $753 million, representing a 74% increase [18][19] - The company recorded a GAAP net income of $0.6 million in Q3 2025, compared to a net loss of $62.3 million in Q3 2024, primarily driven by a $10.2 million increase in the fair value of its Bitcoin investment treasury [19][20] Business Line Data and Key Metrics Changes - The company is experiencing organic growth, with significant contributions from new customers and deeper penetration into the existing customer base, particularly through its Bitcoin gift card and credit card offerings [18][21] - The upcoming Bitcoin Rewards credit card is expected to enhance customer acquisition and increase transaction volumes, with a waitlist exceeding 80,000 users [9][40] Market Data and Key Metrics Changes - The company is well-positioned to capture the growing demand for Bitcoin financial services, particularly among millennials who are expected to control nearly $80 trillion in wealth in the coming years [7][8] - The company has established partnerships with Visa and Stripe for its credit card, enhancing its credibility and distribution capabilities in the market [8][9] Company Strategy and Development Direction - The company aims to create a comprehensive ecosystem that integrates earning, saving, and spending in Bitcoin, with a focus on innovative financial products [14][15] - The strategy includes monitoring regulatory changes and exploring opportunities in loan products, retirement plans, and insurance offerings [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the growing adoption of Bitcoin and the company's unique position to meet this demand [6][8] - The company anticipates continued revenue growth driven by new product lines and increased marketing investments, particularly in Q4, which is historically the highest volume quarter [24][65] 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][22] - The company has a healthy balance sheet with cash and cash equivalents of $6.7 million and no unsecured debt [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 gift card rollout, with significant customer engagement expected during the holiday season [29][30] Question: What does the expansion of gift card locations look like? - The company is exploring various retail and promotional opportunities, including partnerships with sports venues and loyalty programs [33][34] Question: How is the demand for the credit card trending? - The waitlist for the credit card has surpassed 80,000, indicating strong interest and growth potential in this new product category [39][40] Question: How will customer acquisition and marketing spend change? - The gift card is becoming a successful customer acquisition tool, with negative acquisition costs, allowing the company to generate revenue while acquiring new customers [43][44] 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 without selling it, aligning with its long-term growth strategy [53][54] Question: What is the strategy for converting active accounts into verified users? - The upcoming credit card is expected to be a key driver in converting existing users into deeper product lines, enhancing overall engagement [78][80]

Core Insights - Fold Holdings, Inc. has partnered with Blackhawk Network, Inc. to enhance the distribution of the Fold Bitcoin Gift Card, aiming to increase consumer access to bitcoin through major U.S. digital retailers [1][3] - The Fold Bitcoin Gift Card allows consumers to gift bitcoin in a familiar format, facilitating easier access for those without technical knowledge or a crypto wallet [4][6] - The initiative is positioned to tap into the $300 billion U.S. gift card market, addressing a long-standing challenge in integrating bitcoin into everyday commerce [4][5] Company Overview - Fold is the first publicly traded bitcoin financial services company, with a treasury of over 1,492 BTC, focusing on making bitcoin accessible for individuals and businesses [6] - The company offers various products, including the Fold App, Fold Credit Card™, Fold Bitcoin Gift Card™, and Fold Debit Card™, bridging traditional finance and the bitcoin ecosystem [6] Industry Trends - There is a growing momentum for crypto-based gifting, with 47% of executives anticipating growth in the crypto gift card category in 2025, indicating a shift in consumer preferences towards digital assets [5] - Blackhawk Network, with over 400,000 consumer touchpoints, is enhancing the retail ecosystem for cryptocurrency, providing practical ways for consumers to engage with digital currencies [3][7]