After selling 832 BTC to clear debt, this Nasdaq-listed crypto firm is using a 1-for-50 reverse split to mask its shrinking treasury

Fold reported $28.4 million in cash and cash equivalents at June 30. The company also raised additional liquidity by selling about 5.82 million shares for $7.5 million under its equity facility during the first half. Fold has not said how it would cover future cash needs without returning to stock sales or using more of the investment treasury.

Nasdaq notified Fold on July 14 that its shares had closed below the exchange’s $1 minimum for 30 consecutive business days. The notice had no immediate effect on the listing and gave Fold an initial cure period through Jan. 11, 2027.

To regain compliance, Fold’s shares must close at or above $1 for at least 10 consecutive business days, or longer if Nasdaq requires. The company may qualify for another 180-day period if it meets the exchange’s other conditions.

Fold is seeking shareholder authority for a reverse split ranging from 1-for-2 to 1-for-50. Its filing does not say that a ratio has been selected or that a split has been implemented. If Fold uses that authority, the maneuver could address the bid-price requirement without changing the company’s underlying cash position.

The downside risk remains conditional. Under Fold’s February investor-note terms, an actual failure to maintain its Nasdaq listing would constitute an event of default on the $13 million note. The current deficiency notice is not a delisting and did not itself trigger that provision.

Fold could therefore restore compliance without selling Bitcoin or raising equity if its stock recovers or a reverse split takes effect. What remains unanswered is how the company will fund continuing operations while protecting the 194 $BTC it reported in its investment treasury as of June 30.