Bitcoin Rewards App Fold Plans to Go Public on Nasdaq at a $365M Valuation

This move will be executed through a merger with the special purpose acquisition company (SPAC) FTAC Emerald Acquisition.

Bitcoin rewards app Fold is set to become a publicly traded company on Nasdaq through a merger with FTAC Emerald Acquisition, a special purpose acquisition company (SPAC).

This move, announced on July 24, will see Fold go public at an implied valuation of $365 million. The company will merge with the SPAC, and upon completion, Fold will be listed on Nasdaq with a new name.

This differs from a conventional initial public offering (IPO), where a company floats new shares to the public. In a SPAC transaction, the company merges with an already listed shell company.

Fold operates a cashback debit card app, allowing users to spend fiat currency or Bitcoin at participating merchants, both online and physical. Consumers receive their cashback rewards in the form of Bitcoin for the transactions they make.

According to the official announcement, the boards of both companies have approved the proposed SPAC transaction, which is expected to close in Q4 2024. Fold is set to have more than 1,000 BTC on its books after the merger.

The proceeds from the merger will be used to fuel Fold’s further growth and scale up its activities. There is also a lock-up period of six months for the existing shareholders, which may be impacted if Fold’s shares trade at $12 or more within 90 days of its listing.

Pre-IPO shareholders are expected to own approximately 71% of Fold’s total outstanding shares.

Since launching in 2019, Fold has processed over $2 billion in transactions, distributed $45 million in Bitcoin rewards, and raised $2.5 million from investors like Craft Ventures and CoinShares.

This IPO will be a major step for Fold, which aims to expand its services in the cryptocurrency and payments sector.

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