Bitcoin Firm Fold to Go Public in $365 Million SPAC Deal
A financial services platform in Bitcoin announced its plans this year to go public through a special purpose acquisition company (SPAC) deal valued at $365 million.
The firm, known as Fold, will combine with FTAC Emerald Acquisition Corp., leading to a listing on the Nasdaq under a new ticker symbol at a later, unspecified date.
Transition to Public Listing
- Fold’s pre-money equity valuation stands at $365 million
- Post-acquisition, the company anticipates holding over 1,000 Bitcoin
- Since establishment in 2019, Fold has processed more than $2 billion in volume
Benefits for Customers
- Users earn Bitcoin rewards through services like bill pay, debit cards, and insured accounts
- No fees for purchasing BTC on the platform
- Total distribution of $45 million in Bitcoin rewards to customers since inception
Shareholder Details
- Current Fold stockholders are set to own approximately 71% of the combined company’s outstanding shares
- Post-transaction, shareholders face a six-month lockup period
Evolving Cryptocurrency Landscape
If the deal closes as expected this year, Fold will join the ranks of rare cryptocurrency companies transitioning to public status successfully.
Other firms in the same sector, such as Swan, have faced challenges in this regard.
Regulatory Hurdles
Securing regulatory approval will be crucial for Fold, given the increased scrutiny by the U.S. Securities and Exchange Commission on crypto companies.
High-profile firms like Bullish Global, eToro Group, and Circle Internet Financial have faced obstacles in their bids to go public in recent years.
Hot Take: Fold’s Journey to Public Listing
The move by Fold to go public represents a significant milestone in the cryptocurrency space, showcasing the sector’s maturation and increasing interest from traditional financial markets.
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