Fold’s Bitcoin Rewards Card with Visa & Stripe

Fold’s newly announced Bitcoin credit card aims to simplify crypto adoption for the masses. Operating on the Visa network and powered by financial infrastructure giant Stripe, the card eliminates common barriers to earning Bitcoin. According to founder and CEO Will Reeves, the product requires ‘no categories to manage, no tokens to stake, no exchange account or balance requirements.’ The core offer is an unlimited 2% back in Bitcoin on all purchases, instantly. This base reward can be boosted by an additional 1.5% when payments are made through a Fold Checking Account, bringing the total potential return to 3.5%.

Beyond everyday spending, Fold is leveraging a network of major retail partners to enhance the value proposition. The company stated that users can earn up to 10% back in Bitcoin at hundreds of brands, including Amazon, Target, Home Depot, Uber, and Starbucks. This strategy directly targets high-frequency spending categories. In its announcement, Fold’s partner Stripe revealed it has already processed over $3.1 billion in transaction volume for crypto rewards, distributing more than $83 million in Bitcoin to users, and holds a treasury of 1,485 BTC, valued at approximately $167 million.

Despite the positive product details, the market reaction was decisively negative. Fold’s stock (FLD) on the Nasdaq opened strong on Tuesday at $4.69, a significant jump from its previous close of $3.88. However, the optimism was short-lived. The price quickly reversed course, plunging to $3.32 by the time of the report—a drop of over 14% for the session. This sell-off continues a pattern of recent volatility for the company.

The stock’s decline appears linked to a case of mistaken investor identity. Last Friday, FLD shares roughly doubled, peaking above $7 amid speculation that veteran crypto investor Mike Alfred was joining Fold. Instead, on Monday, publicly traded crypto firm Bakkt (BKKT) announced Alfred’s appointment to its advisory board. This news prompted a spike in BKKT’s stock, which was up nearly another 18% on Tuesday to $17.31. Fold’s stock fell on the Bakkt announcement Monday and continued its slide Tuesday, suggesting the initial surge was built on speculation that ultimately benefited a competitor.

Even with the sharp daily decline, FLD remains up about 8% over the last week, though it is down approximately 12% for the month. This volatility underscores the sensitivity of crypto-related stocks to news and investor sentiment, often overshadowing fundamental product developments.

The challenging environment for Fold is set against a cautious backdrop for Bitcoin itself. While the price of Bitcoin was roughly flat on the day at $112,774, it had fallen about 3% over the week. More telling is the shift in market sentiment. According to data from Myriad Markets, a unit of Decrypt’s parent company DASTAN, a majority of predictors have turned bearish.

As of the report, 53% of users expect Bitcoin to fall to $105,000 before it can rise to a new all-time high of $125,000. This bearish sentiment has grown substantially from just 38% the previous week. This cautious outlook on the primary cryptocurrency may be contributing to the lukewarm reception for a product whose core value is tied directly to Bitcoin’s appeal and stability.

For Fold, the path forward involves navigating a complex landscape. The company has not announced a timeline for the card’s release, leaving a key question unanswered for potential users and investors. The product’s success will depend on its ability to execute a flawless launch and attract a critical mass of users in an increasingly crowded market for crypto rewards.

The stark contrast between the card’s user-friendly promise and the stock’s negative reaction serves as a reminder of the divergent forces at play. While Fold CEO Will Reeves pitches ‘clear and compelling value’ for consumers, the market is currently weighing competitive pressures and broader crypto sentiment more heavily. The company’s ability to bridge this gap will be crucial for its long-term valuation.