In a bold prediction signaling a potential shift in consumer loyalty programs, Fold CEO Will Reeves stated that Bitcoin rewards are poised to overtake traditional airline miles as the preferred consumer reward in the United States. This declaration came during the Bitcoin financial services firm’s fourth-quarter and full-year 2025 earnings call on Tuesday, March 17, 2026, following an 8% revenue increase to $9 million for the quarter.
Fold Q4 Revenue Growth Amidst Strategic Pivot
Fold reported gaining 2,000 new customers in Q4 2025, continuing its expansion within the competitive cryptocurrency financial services sector. The company recently launched its Fold Bitcoin Rewards Credit Card, a product powered by Visa and Stripe that offers cashback and rewards in Bitcoin. This product rollout represents a core part of Fold’s strategy to integrate Bitcoin reward schemes directly into everyday consumer spending.
However, the financial results presented a mixed picture. Despite the revenue increase, Fold’s transaction volume fell 3% year-over-year to $215 million for the quarter. The company also reported an operating loss of $6 million. For the full 2025 fiscal year, Fold recorded a net loss of $69.6 million, according to its latest financial statements filed with regulators.
The Competitive Landscape of Crypto Credit Cards
Fold operates in a crowded field of cryptocurrency platforms offering Bitcoin-backed credit card rewards in the U.S. market. Major competitors include established names like Coinbase, Gemini, Swan Bitcoin, and River Financial. Each platform offers variations on the theme of converting traditional spending into Bitcoin accumulation, creating a fierce battle for market share and consumer adoption.
During the earnings call, CEO Will Reeves emphasized the scale required for success. “That means that these card programs and our card program needs to scale to millions of cardholders,” Reeves stated. He added a note of caution, highlighting that “better risk and fraud controls must be implemented” before the company can “really open the floodgates” for mass adoption. This focus on security and scalability reflects broader industry concerns as cryptocurrency products seek mainstream acceptance.
Enterprise Expansion and Balance Sheet Management
Beyond consumer cards, Fold has expanded into enterprise solutions with its Fold for Business product. This service enables companies to incorporate Bitcoin into payroll systems, employee bonuses, and corporate financial programs. One of Fold’s most notable partnerships is with the restaurant chain Steak ‘n Shake, which now accepts Bitcoin and pays employee bonuses in the cryptocurrency.
Reeves highlighted a significant balance sheet improvement, noting the company had extinguished “our two outstanding convertible debt instruments.” This move, he explained, “removes structural overhang and directs financing solely to the growth of our operating businesses.” With a cleaner capital structure, Reeves stated that 2026 is “about scaling what we’ve built across customer acquisition, engagement, cross-sell, and retention.”
Contrasting Financial Performance and Market Challenges
Despite the CEO’s confidence, Fold’s financial and market performance reveals significant challenges. The company has dramatically reduced its Bitcoin treasury holdings, selling nearly half of its Bitcoin reserves. Holdings that stood at 1,527 BTC at the end of 2025 had dropped to 827 BTC as of March 17, 2026. This selloff occurred alongside a steep decline in the company’s stock value.
According to Google Finance data, Fold (FLD) shares have fallen 59% since the beginning of 2026 and have dropped 83.8% over the last twelve months. The stock experienced a brief 13.4% after-hours increase to $1.27 following the earnings release on Tuesday, but then fell 4.46% on Wednesday, March 18, closing at $1.07. This volatility reflects investor uncertainty about the company’s path to profitability in the competitive crypto financial services sector.
The Historical Context of Reward Programs
The prediction that Bitcoin rewards could surpass airline miles represents a potential paradigm shift in consumer loyalty. Airline miles have dominated travel rewards for decades, creating massive loyalty programs like American Airlines’ AAdvantage and United’s MileagePlus. These programs have historically driven consumer behavior, particularly among frequent business travelers.
Cryptocurrency rewards programs represent a fundamentally different value proposition. Instead of points redeemable for travel, users accumulate a decentralized digital asset with a fluctuating market value. Proponents argue this offers greater potential upside and utility, while critics point to Bitcoin’s volatility as a drawback for a stable rewards system. The success of this model depends on both consumer adoption of cryptocurrency and stability in digital asset markets.
Regulatory and Security Considerations for Scale
Reeves’ emphasis on implementing “better risk and fraud controls” before scaling highlights a critical industry challenge. Cryptocurrency financial services operate under increasing regulatory scrutiny from agencies like the Securities and Exchange Commission and the Consumer Financial Protection Bureau. Compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations adds complexity and cost to scaling these services to millions of users.
Furthermore, the technical security of cryptocurrency holdings remains a paramount concern. High-profile exchange hacks and wallet vulnerabilities have made security a top priority for both companies and consumers. Fold and its competitors must demonstrate robust security measures to gain the trust necessary for mass adoption of Bitcoin reward cards.
Conclusion
Fold’s Q4 2025 results and forward-looking statements reveal a company at a critical juncture. While reporting revenue growth and expanding its Bitcoin rewards product line, the company faces significant financial losses and a declining stock price. CEO Will Reeves’ prediction that Bitcoin rewards will overtake airline miles represents both an ambitious vision and a recognition of the scale required to compete in the loyalty program market. The coming year will test whether Fold can successfully scale its operations, improve its financial performance, and convince American consumers that Bitcoin represents the future of spending rewards. The broader success of this model may depend on Bitcoin’s market stability, regulatory developments, and the ability of crypto financial services to match the security and reliability of traditional banking products.
FAQs
Q1: What was Fold’s revenue growth in Q4 2025?
Fold reported an 8% increase in revenue to $9 million for the fourth quarter of 2025, while gaining 2,000 new customers.
Q2: What did Fold’s CEO predict about Bitcoin rewards?
CEO Will Reeves predicted that Bitcoin rewards will overtake airline miles as the preferred consumer reward in the United States, though this would require scaling to millions of cardholders.
Q3: What are Fold’s main competitors in the Bitcoin rewards space?
Major competitors include Coinbase, Gemini, Swan Bitcoin, and River Financial, all of which offer Bitcoin credit card rewards programs in the U.S. market.
Q4: What challenges is Fold facing despite revenue growth?
The company reported a 3% year-over-year decline in transaction volume to $215 million, an operating loss of $6 million for Q4, and a full-year 2025 net loss of $69.6 million. Its stock price has also declined significantly.
Q5: How has Fold changed its Bitcoin holdings recently?
Fold has reduced its Bitcoin treasury from 1,527 BTC at the end of 2025 to 827 BTC as of March 17, 2026, selling nearly half of its reserves amid a declining stock price.
Updated insights and analysis added for better clarity.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
