Fold shares surged Wednesday after the Bitcoin financial services company said it sold $45 million worth of bitcoin and used part of the proceeds to fully repay its collateralized debt.

The company said it monetized its bitcoin at an average price of roughly $71,000 per coin, generating $45 million in proceeds. Fold used $20 million to repay its Bitcoin collateralized debt in full, while the remaining $25 million will be held as unrestricted capital to support its next phase of growth.

The stock surged as much as 160% following the announcement, as investors appeared to treat the sale less as a retreat from Bitcoin and more as a balance sheet reset. By clearing the secured debt, Fold removed a key overhang, reduced leverage, and improved its liquidity position without issuing new shares.

Fold said the transaction also strengthens monthly cash flow by eliminating interest expenses tied to the debt. The company framed the move as a way to increase flexibility across its consumer and business products, including its Bitcoin rewards app, card products, and treasury strategy.

The move comes as public Bitcoin treasury companies face growing scrutiny over leverage, liquidity, and the ability to fund operations during market downturns. Fold’s sale shows one path for smaller Bitcoin linked firms looking to preserve upside exposure while reducing balance sheet risk.