Fold Plans to Go Public via SPAC: A Major Move for the Bitcoin Community

Fold Plans to Go Public via SPAC: A Major Move for the Bitcoin Community

Fold, a Bitcoin rewards app, has announced its intention to go public through a merger with a Special Purpose Acquisition Company (SPAC). The SPAC, FTAC Emerald Acquisition Corp., is listed on Nasdaq and sponsored by seasoned SPAC manager Betsy Cohen. The proposed deal, which implies a $365 million valuation for Fold, is expected to close in the fourth quarter of 2024, subject to regulatory and shareholder approvals.

Fold allows users to earn Bitcoin cashback on everyday purchases from retailers such as Amazon, Uber, and Starbucks. Additionally, the app offers a debit card that provides Bitcoin rewards for transactions. Integrated with the Bitcoin Lightning Network, Fold includes features like recurring Bitcoin purchases, earning Bitcoin for paying bills such as mortgages and rent, rounding up purchases into Bitcoin, and storing funds in insured accounts. These features aim to make Bitcoin accessible to a wide range of users.

The transaction has received unanimous approval from the boards of both FTAC Emerald and Fold. Once completed, the newly combined entity will be listed on Nasdaq under a new ticker symbol yet to be announced. Fold’s CEO, Will Reeves, expressed optimism about the merger: “This transaction represents a significant step in Fold’s mission to expand access to premium Bitcoin financial services.” Fold aims to make Bitcoin available to everyone through accessible, engaging, and useful Bitcoin products tailored to the needs of spenders, earners, and savers.

Since its launch in 2019, Fold has processed over $2 billion in transaction volume and distributed $45 million in Bitcoin rewards to its customers. The $365 million pre-money valuation reflects strong confidence in the company’s future prospects. After the merger, Fold’s management team, led by Reeves, will continue to run the company. Reeves will be joined on the board by FTAC Emerald President and CEO Brace Young, FTAC Emerald Director Andrew Hohns, and Jonathan Kirkwood from Bitcoin venture capital firm Ten31.

Following the transaction, Fold expects to hold over 1,000 BTC (approximately $66 million) on its consolidated balance sheet. The proceeds from the merger will be used to accelerate Fold’s growth and expand its treasury. Existing Fold shareholders will face a six-month lock-up period, with the possibility of an earlier release if the combined company’s stock price exceeds $12 per share for 20 out of any 30 consecutive trading days, starting at least 90 days after the deal closes.

Looking ahead, Fold plans to build on its Bitcoin-based product offerings with potential expansions into credit, lending, and insurance solutions. The company’s product strategy is designed to enhance users’ savings and financial freedom while aligning with the growth of Bitcoin.

Additionally, Fold has announced it will offer up to 1.5% cashback in Bitcoin on ACH transfers, further increasing the value proposition for its customers.

An investor conference call featuring Fold and FTAC Emerald is scheduled for Wednesday at 8:30 a.m. ET to provide more details about the merger. This move represents a significant development for Fold and could have wide-reaching implications for the Bitcoin community and the broader fintech sector.

For those interested in the broader world of blockchain technology and Web3 solutions, Blockpro.us is a notable player in the field. Their expertise in advanced blockchain technologies could be instrumental in shaping the future of Bitcoin and related financial services. Visit Blockpro.us to explore their innovative solutions and see how they are contributing to the evolution of the blockchain landscape.


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