Ryan Breslow, co-founder and returning CEO of Bolt, made headlines recently as he addressed the $30 million loan controversy that led to significant legal challenges and his temporary removal from the CEO position. Speaking at the Fintech Meetup in Las Vegas, Breslow defended his actions while announcing an ambitious new direction for the company.

Background on the Loan Controversy

The legal troubles surrounding Breslow stemmed from a 2023 lawsuit initiated by Bolt investor Activant. The lawsuit claimed Breslow had burdened the company with significant debt by borrowing $30 million and later defaulting, allegedly utilizing company funds to manage repayments.

Following a settlement, Bolt agreed to repurchase Activant’s shares for $37 million last year. During his presentation, Breslow emphasized that the loan was intended as a sign of loyalty to Bolt rather than as self-serving behavior, as accused by Activant.

Defensive Remarks from Breslow

Breslow asserted that the loan was unanimously approved by the board and represented his commitment to the company. “It was done to be pro-Bolt,” he explained, adding that he chose this route to avoid selling stock in a secondary transaction. He aimed to assure investors of his commitment by keeping his shares intact.

Addressing the circumstances surrounding the loan’s repayment, Breslow mentioned feeling that the call for repayment was an “attack” following his exit from the CEO role. He acknowledged having faced past allegations regarding misleading investors and inflating company metrics but indicated that he viewed his primary misstep as allowing unfamiliar individuals onto Bolt’s cap table.

Introducing the ‘Everything App’

In his new capacity as CEO, Breslow is set to unveil a groundbreaking “everything app” that will bundle Bolt’s one-click checkout feature with various services, including financial products, crypto, and peer-to-peer transactions. “Instead of one-click checkout, we’re going to have one-click everything,” he announced.

Comparisons and Market Positioning

Breslow drew parallels between Bolt and U.K. fintech giant Revolut, which was valued at $45 billion last year. He claimed Bolt has 80 million active wallets, surpassing Revolut’s 45 million, though he admitted that Bolt has yet to monetize its consumer base effectively. Current reports indicate Bolt’s annual recurring revenue (ARR) is approximately $28 million, with $7 million in gross profit as of March 2024, contrasting sharply with Revolut’s reported revenue of $2.2 billion in 2023.

Financial Future and Recent Legal Developments

Looking ahead, Bolt’s financial strategies have drawn scrutiny, particularly concerning a potential $450 million fundraising round announced in August. There have been discussions about the utilization of $250 million in “marketing credits,” raising questions about its unconventional application. Reports indicate that Bolt’s notable investors, including BlackRock and Hedosophia, sought to restrain the funding round, but all legal actions have since been voluntarily dismissed.

While Breslow noted that all remaining lawsuits against him had been settled or dismissed, he refrained from commenting on the status of the $450 million fundraising effort. He concluded his remarks by expressing a renewed resolve to guide Bolt to new heights, stating, “I’ve got a very big chip on my shoulder.”

Conclusion

As Ryan Breslow resumes his role, both the controversies surrounding his financial dealings and the anticipated launch of the ‘everything app’ will continue to shape the narrative for Bolt in the fintech sector.