Fold's Bitcoin Rewards Credit Card Launches on Visa Network, Stock Plunges
Fold Holdings, a Bitcoin financial services company, announced Tuesday that its long-awaited BTC rewards credit card will operate on the Visa network through a collaboration with financial infrastructure firm Stripe. Despite the initial positive reaction, Fold's stock (Nasdaq: FLD) experienced a sharp decline.
Fold Bitcoin Credit Card: Rewards and Benefits
The Fold Bitcoin Credit Card aims to make earning Bitcoin accessible through everyday spending. It offers up to 3.5% back in Bitcoin on all purchases, without any spending categories or deposit requirements. Users can earn an instant 2% back, with an additional 1.5% when paying through their Fold Checking Account.
- Unlimited 2% back on all purchases instantly.
- Up to 1.5% additional back when paying through Fold Checking Account.
- Enhanced rewards up to 10% with major partners like Amazon, Target, Home Depot, Uber, and Starbucks.
According to Fold, the card offers a compelling value proposition for anyone interested in accumulating Bitcoin effortlessly.
FLD Stock Performance: Initial Pop Followed by a Significant Drop
FLD opened at $4.69 on Tuesday, following a closing price of $3.88 on Monday. However, the positive momentum quickly faded, as the price plunged to $3.32 as of Tuesday afternoon, representing a decrease of over 14%. This followed a surge on Friday spurred by speculation regarding Mike Alfred joining the company.
“Our credit card offers clear and compelling value and makes Bitcoin easily accessible to everyone,” said Fold founder, Chairman, and CEO Will Reeves, in a statement. “There are no categories to manage, no tokens to stake, no exchange account or balance requirements; just real Bitcoin, earned automatically with every purchase.”
Stripe's Involvement and Bitcoin Holdings
Stripe stated that it has already processed over $3.1 billion in transaction volume and distributed more than $83 million in Bitcoin rewards. Furthermore, the company holds 1,485 BTC in its treasury, valued at approximately $167 million.
Bakkt's Announcement and Market Reaction
Fold's stock surge on Friday was fueled by speculation that crypto industry investor Mike Alfred would join the company. However, another publicly traded crypto company, Bakkt, announced Alfred’s appointment to its advisory board on Monday, leading to a spike in Bakkt’s stock price. Consequently, FLD saw a price drop on Monday that continued into Tuesday.
Bakkt's stock rose nearly 18% on Tuesday, reaching $17.31. While FLD is up about 8% over the last week, it’s down approximately 12% on the month.
Bitcoin Market Overview
Bitcoin is relatively stable on the day, trading around $112,774, but has decreased by about 3% over the week. Market sentiment suggests that users are becoming more bearish regarding Bitcoin’s immediate potential to reach $125,000. There is no timeline for the release of the Fold card yet.
