Fold

Bitcoin

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Bitcoin-based rewards app Fold has announced plans to launch as a publicly traded company on the Nasdaq at an implied valuation of $365 million.&nbsp;
Fold inked an agreement to go public by way of a business combination deal with special purpose acquisition company (SPAC) FTAC Emerald Acquisition, according to a July 24 <a href="https://www.businesswire.com/news/home/20240724261013/en/Fold-to-Go-Public-as-the-First-Pureplay-Financial-Services-Company-Powered-by-Bitcoin" target="_blank" rel="noopener noreferrer nofollow">statement</a>.
Unlike a traditional IPO — where a private company issues new shares and then sells them on a public exchange — a SPAC transaction occurs when a private company goes public by merging with a shell company.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/a154c07c-9cfc-48bc-8b3a-66accc2e46b3.png" alt="Bitcoin rewards app Fold to go public on Nasdaq via SPAC deal">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/fold_app/status/1816068687247315252" target="_blank" rel="noopener noreferrer nofollow">Fold</a>
 </figcaption>
</figure>
Following the completion of the SPAC transaction, Fold will launch on the Nasdaq under a yet-to-be-announced ticker.
Fold is a debit card cashback app that allows customers to pay for everyday items and bills in both fiat and BTC at online and in-store retailers. Users are paid in variable Bitcoin-denominated rewards for making purchases through the app.
<h2 id="deal-to-close-in-fourth-quarter">Deal to close in fourth quarter</h2>
Fold said the SPAC transaction had been unanimously approved by the directors of both companies and expects this to close sometime in the fourth quarter of 2024.
<blockquote>
 “The transaction implies a pre-money equity valuation for Fold of $365 million.”
</blockquote>
“It is anticipated that post-transaction Fold will have more than 1,000 BTC on its consolidated balance sheet,” said the firm.
Fold said it would use the proceeds of the merger deal with FTAC Emerald to “accelerate the growth” of Fold’s operations and treasury.
The payments app said existing shareholders would be subjected to a six-month lock-up, but this would be revised if the company’s share price exceeded $12 within 90 days of Fold being listed on the Nasdaq.
Related: <a href="https://cointelegraph.com/news/stripe-brings-back-crypto-payments-stablecoin" rel="noopener noreferrer nofollow">Stripe bringing back crypto payments, this time with a stablecoin</a>
Legacy shareholders — any person who owns shares in the company immediately before the firm goes public — are expected to own approximately 71% of the company’s outstanding stocks.
Since its inception in 2019, the firm has processed over $2 billion in transaction volume and has distributed over $45 million worth of Bitcoin-based rewards to its users.
In September 2019, Fold <a href="https://cointelegraph.com/news/fold-app-raises-25m-to-bring-bitcoin-lightning-payments-to-starbucks" rel="noopener noreferrer nofollow">raised $2.5 million in a round</a> featuring participation from Craft Ventures, Goldcrest Capital, Slow Ventures, Fulgur Ventures, and digital asset management firm CoinShares.
Magazine — <a href="https://cointelegraph.com/magazine/bali-indonesia-crypto-digital-nomad-remote-work-cointelegraph-magazine/" rel="noopener noreferrer nofollow">Become a Bali crypto digital nomad like me: Here’s how</a>

Bitcoin rewards app Fold to go public on Nasdaq via SPAC deal

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