Bitcoin rewards app Fold is set to go public on Nasdaq through a SPAC deal, valued at $365 million. The company has agreed to merge with FTAC Emerald Acquisition, a special purpose acquisition company (SPAC), according to a July 24 announcement.
This route differs from a traditional IPO, where a private company issues new shares to be sold on a public exchange. Instead, a SPAC transaction involves merging with a shell company to become publicly traded.
After the SPAC transaction, Fold will debut on Nasdaq with a ticker to be announced. The app, which offers debit card cashback, lets users pay for everyday items and bills in fiat or Bitcoin at both online and in-store retailers. Users earn Bitcoin-denominated rewards for their purchases.
Fold’s SPAC Deal Set to Close in Q4
Fold announced that its SPAC merger with FTAC Emerald is expected to close in Q4 2024, with a pre-money valuation of $365 million. The firm anticipates having over 1,000 BTC on its balance sheet post-transaction.
The proceeds will be used to accelerate growth and bolster its treasury. Existing shareholders will face a six-month lock-up period, subject to revision if the share price exceeds $12 within 90 days of the Nasdaq listing.
Legacy shareholders, those who hold shares before the company goes public, are expected to retain around 71% of Fold’s outstanding stock. Since its launch in 2019, Fold has processed over $2 billion in transactions and distributed more than $45 million in Bitcoin rewards. In September 2019, the company raised $2.5 million in a funding round with investors including Craft Ventures, Goldcrest Capital, Slow Ventures, Fulgur Ventures, and CoinShares.
