Fold Holdings has started issuing its Fold Bitcoin Credit Card to selected waitlist members, adding a consumer credit product to its growing Bitcoin rewards and workplace payments business.

According to a modified company release, Fold is rolling out the card in batches over the coming weeks and months. The product runs on the Visa network, uses Stripe Issuing, and gives users bitcoin rewards on everyday card spending.

Fold starts Bitcoin credit card rollout

Fold said the card offers a base rate of 1.5% back in bitcoin on purchases. The company said users can earn up to 4% back through behavior-based rewards and targeted offers from Fold’s partner network.

The release said cardholders who pay their bill in bitcoin receive an extra 0.5% back on that payment. Fold also said the card is accepted at 175 million Visa merchants.

Physical cards have started shipping to active holders, according to Fold. New applicants will receive a physical card after approval, while approved users can access a virtual version through the Fold App for Apple Pay and Google Pay.

Visa, Stripe are issuing a new power card

Fold said the card includes real-time bitcoin reward tracking inside its app. The company also listed lock-and-unlock controls, fraud alerts, and payment options via a Fold Checking account or an external bank.

Fold co-founder and CEO Will Reeves said in the release that the launch was a “pivotal milestone” for the company. Reeves said the card avoids “complicated points systems” and instead gives users a direct way to earn bitcoin on purchases.

The rollout gives Fold another consumer-facing product at a time when the company is trying to connect bitcoin rewards with everyday financial activity.

Meanwhile, Fold Holdings recently reported first-quarter 2026 results that missed analyst expectations. The company reported earnings per share of -$0.59, compared with analyst forecasts of -$0.13.

Fold’s revenue also came in below expectations. The company generated $5.59 million in revenue, while analysts had expected $10.09 million. Those results placed more attention on Fold’s product launches as investors reviewed the company’s ability to grow revenue and narrow losses.

Fold also pushes Bitcoin bonuses

Fold’s Bitcoin credit card launch comes after Fold Holdings previously rolled out a Bitcoin-based bonus program for employees, as covered by crypto.news. Fold said the product expands its effort to bring bitcoin into workplace compensation.

The company said the program was launched through Fold Business, its enterprise arm. Fold said it allows companies to distribute recurring bonuses in bitcoin without managing custody or compliance themselves.

Reeves said employers needed a bonus tool that was simple enough for HR and finance teams to use without requiring them to become Bitcoin experts. Fold said it handles dollar-to-bitcoin conversion and distribution, while employers can set bonus amounts in fiat terms and still offer workers bitcoin exposure.

Key Takeaways

• PDD Holdings shares plummet 10% following disappointing Q1 earnings results.
• Revenue climbed 11% year-over-year while net income declined 15%.
• Rising operational costs and supply chain investments pressure profit margins.
• Transaction services revenue increased 20%, demonstrating platform strength.
• Company maintains robust liquidity position with RMB436.1 billion in cash reserves.

Shares of PDD Holdings (PDD) experienced significant downward pressure following the release of first-quarter financial results that revealed declining profitability despite topline expansion. The e-commerce platform operator saw its stock tumble 10.85% to close at $86.16, retreating from intraday levels near $97. The decline came as investors reacted to earnings that demonstrated revenue momentum but highlighted mounting cost pressures.

PDD Holdings Inc., PDD

First Quarter Earnings Fall Short Despite Topline Beat

PDD Holdings disclosed total quarterly revenue of RMB106.2 billion for the three months ending March 31, 2026. This figure represented an 11% year-over-year improvement compared to RMB95.7 billion recorded in the corresponding period of 2025. Despite this revenue acceleration, profitability metrics disappointed investors and triggered the selloff.

Net income allocated to ordinary shareholders contracted 15% to RMB12.5 billion for the quarter. The company’s non-GAAP net income similarly declined 17% to RMB14.1 billion, down from RMB16.9 billion in the prior-year quarter. This earnings compression overshadowed the positive revenue momentum and drove negative sentiment.

Diluted earnings per American Depositary Share came in at RMB8.48, representing a decline from RMB9.94 posted in Q1 2025. On a non-GAAP basis, diluted EPS per ADS decreased to RMB9.51 from RMB11.41 year-over-year. The earnings shortfall triggered significant selling pressure on PDD Holdings shares throughout the trading session.

Topline Momentum Offset by Escalating Operating Expenses

PDD Holdings demonstrated continued strength in its core revenue streams throughout the reporting period. Transaction services revenue surged 20% to reach RMB56.3 billion, up from RMB47.0 billion in the year-ago quarter. Online marketing services and additional revenue streams contributed RMB49.9 billion to the quarterly total.

However, the company confronted elevated cost pressures across multiple operational areas. Total cost of revenues expanded 15% to RMB46.9 billion compared to RMB40.9 billion in the prior year. These increased expenses stemmed primarily from higher fulfillment costs, expanded server infrastructure, bandwidth requirements, and payment processing charges.

Operating expenses climbed to RMB39.8 billion versus RMB38.6 billion in the comparable quarter. Research and development spending increased notably to RMB4.4 billion from RMB3.6 billion as the company invested in platform capabilities. Sales and marketing expenditures held relatively stable at RMB33.8 billion year-over-year.

Strategic Supply Chain Investments Drive Long-Term Transition

PDD Holdings characterized the quarterly results as marking the beginning of a strategic business transformation. Company leadership indicated intentions to allocate additional capital toward supply chain infrastructure development. The organization also outlined plans to expand its proprietary brand portfolio as part of its long-term growth strategy.

Despite the net income decline, operating profit expanded 22% to RMB19.6 billion during the quarter. Non-GAAP operating profit registered a 15% increase to RMB21.1 billion compared to RMB18.3 billion in the prior year. Nevertheless, the bottom-line earnings weakness maintained downward pressure on the stock following management’s commentary.

The company concluded the quarter with RMB436.1 billion in combined cash, cash equivalents, and short-term investment holdings. This represented an increase from RMB422.3 billion held at year-end 2025. The substantial liquidity position provides PDD Holdings with financial flexibility to execute its supply chain enhancement initiatives and platform evolution strategy.

• Bitcoin price fell to below $75,000 on Wednesday, touching $74,600.
• ETF outflows and broader market headwinds mean downside pressure remains.
• Analysts say the current price outlook includes a “dangerous divergence”.

Bitcoin briefly dipped below the $75,000 mark on Wednesday, extending losses from recent highs.

The decline came as selling pressure persisted and spot ETF outflows continued for a seventh straight session.

BTC could rebound sharply if bulls establish sustainable support near current levels. Otherwise, analysts warn that further downside may follow amid a growing divergence between market optimism and actual capital inflows.

The crypto bellwether traded around $75,175 at the time of writing, down 1.29% over the past 24 hours and nearly 3% lower for the week.

Bitcoin tests support below $75k

The week started poorly for Bitcoin as recent gains toward $78,000 evaporated amid persistent geopolitical and macroeconomic headwinds.

On Wednesday, BTC fell to an intraday low of $74,600 during Asian trading hours, testing a support zone that has intermittently held since the asset’s latest recovery.

The move coincided with continued withdrawals from spot Bitcoin exchange-traded funds.

According to SoSoValue, Bitcoin spot ETFs recorded net outflows of $334 million on May 26.

The figure marked the seventh consecutive day of net redemptions, reinforcing downward pressure on price despite periodic spot-market buying.

Bitcoin price outlook: analysts warn of “dangerous divergence”

Market participants noted that Wednesday’s decline remained relatively orderly, with volatility lower than during previous sell-offs.

Liquidity continued to cluster in the $72,000-$76,000 range, where buyers repeatedly emerged to absorb intraday selling pressure.

Still, persistent ETF outflows and profit-taking from recent highs continue to tilt the near-term outlook to the downside.

Analysts and on-chain researchers have also raised caution flags over weakening demand dynamics.

Crypto investor and analyst Axel Adler Jr. shared concerns on X about what some market watchers describe as a “dangerous divergence” between rising optimism and fading capital inflows.

Bitcoin took 5 weeks to rebuild its structure.

It took 3 weeks to erase it.

Structure Shift: +0.78 -> -0.56 STH flows flipped to loss-taking for the first time in 6 weeks.

Now one level decides the next move:$74.5K.

Advertisement

Floor or trapdoor?

☕️ Morning Brief #178 👇… pic.twitter.com/92i4DG0sZ2

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 27, 2026

That view was echoed by a CryptoQuant analyst, who argued that improving bullish sentiment has not been matched by fresh money entering the market.

“This often reflects late-stage speculative behavior: traders become optimistic after a recovery, long positioning increases, but actual capital participation fails to expand,” crypto analyst @MorenoDV wrote.

The analyst added that price strength built on weak inflows may remain vulnerable to sharp reversals.

Meanwhile, analysts at Bitfinex said Bitcoin’s current reaction to ETF outflows differs from earlier market downturns.

“The breakdown that took $BTC to 60k in February is not having the same impact on the market today. ETF outflows are running -$700M a day, close to the February prints that drove price from $100K to $70k. This time, the price is holding. An unidentified bid is absorbing it,” they wrote.

From a technical perspective, Bitcoin now appears caught between the risk of a deeper retracement toward $70,000 and the possibility of renewed bullish momentum.

If buyers regain control, recent highs in the $78,000-$83,000 range could come back into focus.

Elon Musk could soon control one of the largest corporate bitcoin BTC$75,807.15 holdings in public markets if Tesla and SpaceX ultimately merge, according to reports surrounding ongoing internal discussions about combining the companies.

CNBC reported Tuesday that Musk has discussed with colleagues the possibility of folding Tesla and SpaceX together, citing people familiar with the talks. A current Tesla employee told CNBC that many workers at the electric vehicle company have long expected such a transaction to eventually happen and that the possibility is openly discussed internally.

Another person close to the company reportedly said growing overlap between the businesses — particularly around power infrastructure and computing constraints tied to artificial intelligence — has increased collaboration between the firms.

The potential merger would also create one of the largest corporate bitcoin treasuries in the world.

Tesla currently holds 11,509 bitcoin, while SpaceX owns 18,712 bitcoin, according to public disclosures and blockchain treasury tracking data. Combined, the companies would control 30,221 bitcoin worth roughly $3.3 billion at current prices.

That total would make the merged company the fifth-largest public corporate holder of bitcoin globally.

The combined holdings would trail only Michael Saylor’s Strategy (MSTR), bitcoin investment firm Twenty One Capital (XXI), Jack Mallers’ bitcoin-focused venture and bitcoin mining companies Metaplanet and Marathon Digital Holdings (MARA.)

SpaceX is also expected to begin trading on the Nasdaq next month after obtaining a private market valuation of roughly $1.25 trillion earlier this year following its merger with Musk’s artificial intelligence company, xAI.

A combination between Tesla and SpaceX would further tighten Musk’s growing network of interconnected technology businesses spanning electric vehicles, aerospace, artificial intelligence, payments and communications infrastructure.

Neither Tesla nor SpaceX has publicly confirmed merger plans.

Tesla first disclosed bitcoin purchases in 2021 and briefly accepted the cryptocurrency for vehicle payments before suspending the option over environmental concerns tied to bitcoin mining. Musk has remained one of the most influential public figures in crypto markets, often moving prices through comments on bitcoin and dogecoin (DOGE.)

Jefferies said it expects a new wave of crypto and blockchain-related public listings as institutional adoption of digital asset infrastructure accelerates across Wall Street and the payments industry.

In a report published after its first Digital Assets Investor Conference in New York, Jefferies said it expects a surge of crypto-related public listings over the next two years and believes the sector could grow into a $1 trillion public market within five years.

The conference, which gathered executives from 35 digital asset companies alongside roughly 150 institutional investors, focused less on bitcoin price speculation and more on how blockchain systems are increasingly being integrated into traditional finance.

Jefferies said conversations with clients showed investors are becoming more convinced that blockchain technology is moving beyond experimentation and into core financial infrastructure.

“Client engagement continues to grow as focus shifts to emerging beneficiaries as banks, exchanges, asset managers, fintechs and payments companies integrate blockchain infrastructure,” the report said.

The crypto IPO market has slowed this year after a booming 2025 that saw several digital asset firms successfully go public amid rising bitcoin prices and renewed investor appetite for crypto-related stocks. The recent pullback in listings has largely tracked broader market volatility and macroeconomic uncertainty, but another wave of offerings is expected to come later this year with several crypto companies, including Securitize and Payward, the parent company of Kraken, finalizing IPO plans.

Jeffries also pointed to tokenization — the process of representing financial assets on blockchain networks — as one of the biggest drivers behind that shift. Executives at the conference said tokenized money market funds, private credit products and blockchain-based settlement systems are already moving into production following recent regulatory guidance that reduced legal uncertainty around digital assets.

The trend of Wall Street adopting blockchain technology and not focusing on the crypto prices has been a recurring theme in recent months. Giant financial institutions, such as JPMorgan, Morgan Stanley and other traditional Fintech firms, are going all-in on adopting the technology into their business model, regardless of what the price of bitcoin is doing.

In fact, tokenization and stablecoins were the main topics at Consensus Miami this year, overshadowing all other crypto-related discussions. “We’re moving into a world where essentially the entire economy is going to be tokenized,” said Joseph Lubin, CEO and founder of Consensys in Miami.

Jefferies argued that further regulatory clarity could accelerate adoption even more, particularly among heavily regulated financial institutions. The bank pointed to the proposed CLARITY Act, which would establish a broader market structure framework for digital assets in the U.S., saying that the legislation could become “the missing piece” that drives more institutional investments and pushes blockchain-based finance further into the mainstream.

‘Tech disruption’

The report also highlighted how traditional financial firms are increasingly partnering with crypto-native infrastructure providers rather than competing directly with them.

Panelists at the conference described a growing ecosystem where banks, trading platforms and payments firms use blockchain networks to reduce settlement times, improve capital efficiency and launch new financial products.

Earlier this year, tokenization firm Securitize partnered with transfer agent Computershare to help public companies issue tokenized shares directly within existing shareholder record systems, while crypto platform Bullish (BLSH), the owner of CoinDesk, agreed to acquire transfer agent Equiniti for $4.2 billion to strengthen its blockchain-based settlement infrastructure.

Stablecoins and tokenized payments were repeatedly cited as key areas of near-term growth, especially as payment companies look for ways to lower the cost of cross-border transfers and operate around the clock.

The conference featured executives from firms including Ripple, Kraken, Galaxy (GLXY), Bullish (BLSH) and Consensys.

While institutional adoption was the biggest catalyst when BlackRock first started bitcoin exchange-traded funds, how the adoption would look was among the most talked-about topics back then. Fast forward to today, and it seems these sophisticated investors are viewing the sector as a disruptive technology that can enhance their business model in the long term, rather than short-term speculative trading.

Jefferies said the discussions reflected a broader change in investor attention away from meme coins and speculative trading activity toward blockchain systems generating revenue from trading, payments, lending and tokenized financial products.

“Investors frequently overestimate the magnitude of tech disruption in the near term and underestimate it over the longer term,” the report said.

XBIT DEX is expanding the toolkit for on-chain prediction markets by introducing a dedicated leverage layer, with the 2026 FIFA World Cup serving as the initial proving ground. The platform has opened whitelist applications for Prediction Leverage, signaling a shift toward more flexible risk management in on-chain forecasts.

May 27, 2026 — The once-spot-centric world of on-chain predictions is embracing leverage as users seek ways to hedge, scale, and manage exposure across event-driven markets. Industry data show a surge in activity: March 2026 alone saw monthly trading volume north of $25 billion, a stark acceleration from the year prior. In this environment, Polymarket has emerged as the official prediction market partner for XBIT DEX, and Coinbase has broadened prediction contracts across all 50 U.S. states. Yet, even as capital floods in, the underlying product architectures have struggled to keep pace with demand.

Traditional prediction markets have largely operated on a straightforward, all-in, full-amount purchase model with settlement based on binary outcomes. Participants could not easily add to positions, hedge risk, or adjust leverage in real time. This lack of flexibility mirrors an earlier phase seen in crypto derivatives before the arrival of perpetuals in 2016, which catalyzed a surge in derivatives volumes relative to spot trading. XBIT DEX is positioning Prediction Leverage as the next evolution for on-chain predictions, building a bespoke leveraged infrastructure tailored to the unique mechanics of event contracts.

Leverage system built specifically for prediction markets

Event contracts underpin prediction markets by delivering outcomes that settle to 0 or 100. Unlike perpetuals, these contracts do not rely on continuous funding rates, which leaves a misaligned incentive structure for traditional leverage. To bridge this gap, XBIT DEX has devised an independent leveraged lending framework that borrows against authentic order flow from external prediction markets. Instead of funding rates, leverage openings accrue borrowing interest that adjusts dynamically with supply and demand. The design also emphasizes resilient risk controls: extreme-value liquidation mechanics and adaptive leverage management aimed at handling the pronounced volatility as contracts approach settlement.

The result is a system that can accommodate leveraged exposure in a domain where payouts hinge on discrete, binary outcomes, while still preserving the trustless, on-chain nature of the platform. XBIT DEX describes the approach as a necessary evolution to unlock a broader range of trading strategies within event-driven markets, enabling users to hedge, scale, and diversify positions without leaving the on-chain ecosystem.

World Cup as the testing ground for Prediction Leverage

Prediction markets span politics, finance, and sports, but the World Cup offers a combination of settlement certainty, high event density, and concentrated order flow that suits automated, algorithmic trading. Sports events provide clear outcomes and synchronized global viewership, which translates into more robust liquidity for event-based derivatives. The 2026 FIFA World Cup, kicking off on June 11, is the largest edition to date, with 48 teams, 104 matches, and a 39-day schedule. This environment is being used to seed XBIT DEX’s initial Prediction Leverage offerings, featuring 2x to 5x dynamic leverage that adjusts in real time in response to market conditions.

As part of the rollout, XBIT DEX has already begun offering leveraged prediction trading around selected World Cup teams, with the leverage settings designed to respond to shifts in liquidity and risk. The white-label testing phase is specifically designed to validate the mechanics and guardrails before broader platform-wide deployment.

Whitelist rollout and incentives

Access to Prediction Leverage is currently limited to a whitelist, operating on a first-come, first-served basis. Interested traders can apply at app.xbit.com/whitelist, with eligibility unlocked by completing a series of trading milestones. Early engagement appears strong, with more than 1,700 users already on the waitlist, signaling demand for a more sophisticated toolkit in on-chain predictions. The plan is to open platform-wide access in the lead-up to the World Cup kickoff, aligning product readiness with a surge of global interest in event markets.

In conjunction with the whitelist, XBIT DEX launched a two-week trading campaign running from May 26 through June 10. The promotion includes a 35,000 USDC prize pool distributed across three categories: Early Bird Trading, Referrals, and a Leaderboard. Details are published on the whitelist page, offering participants a structured incentive to explore the new leverage features while the platform validates its risk controls and performance in a live environment.

About XBIT DEX

XBIT DEX markets itself as a decentralized aggregated trading platform that brings together multiple on-chain liquidity sources to deliver low-slippage trading across a suite of products. The platform already supports perpetual contracts, prediction markets, and plans to enable a U.S. stock trading avenue for real-world assets (RWA), with more than 150 tokens accessible to traders. By leveraging its established derivatives infrastructure, XBIT DEX positions itself as the first DEX to introduce a dedicated leverage layer for prediction markets, aiming to unlock more nuanced trading strategies for participants who want to hedge, speculate, or arbitrage across event-driven outcomes.

For more information about the platform and its offerings, readers can visit the official site at XBIT DEX Official Website.

As the World Cup shape and global participation evolve, the industry will watch closely to see how the new Prediction Leverage feature performs under real-world liquidity pressures and settlement dynamics. If successful, the model could redefine how traders approach on-chain event markets, moving beyond binary bets toward more sophisticated risk management and strategy design within the predictable cadence of major sporting events.

Readers should keep an eye on the whitelist progress and the platform’s broader rollout timeline, as well as any regulatory developments that could influence leverage-enabled prediction markets and cross-border capital flows. In the near term, the World Cup stands as a critical proving ground for whether prediction markets can scale with financial innovation while maintaining robust risk controls and transparent settlement.

Grayscale rolls out ETF combining spot Ether exposure with staking rewards

Grayscale has launched the Grayscale Ethereum Staking Mini ETF, a product the firm says provides spot Ether exposure alongside staking rewards and can be bought through brokerage and retirement accounts. Grayscale reports the vehicle has generated more than $15 million in staking rewards since October 2025, and lists a management fee of 0.15% as of March 30, 2026.

What the product offers

The new fund is positioned to give investors a single security that represents exposure to Ether plus the economic benefits of staking, without requiring holders to operate validators, manage private keys, or custody tokens directly. That model appeals to investors who want yield associated with staking but prefer the convenience and custodial safeguards common to traditional investment products.

Key features highlighted by Grayscale include brokerage and retirement account accessibility, the fund’s role in collecting staking rewards on behalf of shareholders, and a relatively low fee compared with some actively managed crypto products. Grayscale also notes the fund is structured differently from ETFs registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory regime as conventional mutual funds or registered ETFs.

How staking within an ETF works and the trade-offs

When an ETF or fund stakes Ether, it commits the underlying tokens to protocol staking mechanisms; those tokens are typically locked for the period required by the network. For the fund, staking can generate rewards, but it also introduces operational considerations and limits liquidity. The fund cannot sell or transfer staked tokens during lock-up windows, which can prevent timely rebalancing or sales if market conditions change.

Grayscale cautions investors that staking inside the fund carries the same broad categories of risk found in direct staking: smart contract vulnerabilities, validator or custodian failures, network outages, and the potential for partial or total loss of staked assets or rewards. The fund earns staking rewards and then distributes value to the fund itself; investors receive the economic benefit through the share price rather than direct token distributions.

Context: why this matters for investors and the market

Bringing staking into an exchange-traded vehicle responds to growing demand for simplified access to on-chain yield without the technical and custody burdens. For retail and many institutional investors, the ability to allocate to a product through familiar brokerage platforms and retirement accounts lowers operational friction and may broaden participation.

At the same time, using a fund wrapper changes the risk and tax profile compared with holding and staking Ether directly. Investors should weigh the convenience of delegated staking and centralized custody against the potential cost of indirect ownership, including any fee drag and counterparty risks.

Regulatory and disclosure points

Grayscale’s materials note the fund is not an investment company registered under the Investment Company Act of 1940. That distinction is important because it means different regulatory requirements apply than those governing registered ETFs and mutual funds. The firm also emphasizes that the information provided is not investment advice and encourages prospective buyers to consult the fund prospectus.

Prospectus and investor guidance: Grayscale’s release reiterates that a prospectus must accompany or precede information about the fund and that investors should read it carefully. The prospectus includes details on fees, risks, staking mechanics, and the fund’s structure.

Implications for market participants

For asset managers and product designers, the product demonstrates another step in converting on-chain yield into tradable financial instruments. For investors, the ETF may offer a way to gain ETH exposure plus additional yield without the complexities of self-custody, but it also concentrates custodian and protocol risk into a single counterparty relationship.

Ultimately, the appeal of such products will depend on investor priorities: whether they prioritize custody and operational simplicity, prefer direct engagement with the protocol for governance or yield maximization, or seek tax treatments that differ between pooled funds and direct holdings.

Investors interested in the Grayscale Ethereum Staking Mini ETF should review the fund’s prospectus, understand the staking-specific risks and lock-up mechanics, and consider how the product fits their broader portfolio strategy. As with all digital-asset investments, heightened volatility and the potential for total loss remain salient considerations.