Fold announced third‑quarter results on November 10, showing revenue of $4.2 million and a net loss of $2.6 million. The company attributed a roughly 270 % rise in custody and trading revenue to sales of Bitcoin‑backed gift cards.
Gift‑card channel drives growth
The firm identified TikTok Shop as its largest gift‑card and customer‑acquisition channel. While the increase in revenue is linked to gift‑card sales, Fold noted that the channel’s impact on long‑term customer retention remains to be demonstrated.
Rewards model and new products
Fold’s rewards program grants eligible spenders actual Bitcoin, which can be kept on the platform or withdrawn. The company also reported more than 88,500 verified accounts and about 2,500 early‑access credit‑card holders. New offerings, including Fold Reserve and Lead Bank spending accounts, are intended to encourage users to maintain balances within the app.
Balance retention and unit economics
Retained balances could generate recurring revenue, but Fold’s filing did not disclose whether the value of these balances exceeds the costs of customer acquisition, account servicing, and incentives.
Financial performance
Adjusted EBITDA recorded a loss of $4.5 million, an improvement from a $5.5 million loss in the prior quarter, yet still negative. The net loss for the quarter stood at $2.6 million.
Outlook
Analysts will watch whether the company can convert the increased access to Bitcoin rewards into sustainable profitability, and whether incentive costs remain manageable as the user base expands.
