Key Points:
- Fold app has submitted its S-4 filing to the SEC for an upcoming IPO.
- The app plans to merge with FTAC Emerald Acquisition Corp., with a Nasdaq listing under the ticker “FLD.”
- Fold held 1,002 Bitcoin (BTC), valued at $63.2 million as of July 2024.
- Expansion plans include Bitcoin deposits, trading services, and reaching previously unsupported U.S. states.
Fold Files S-4 for IPO, Details Merger with FTAC Emerald
The Bitcoin rewards app Fold has taken a major step toward going public, submitting its S-4 filing to the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). This move follows Fold’s July announcement about its plans to go public through a merger with FTAC Emerald Acquisition Corp., a special purpose acquisition company (SPAC).
According to the filing, on July 24, 2024, FTAC Emerald and its subsidiary, EMLD Merger Sub Inc., reached an agreement where EMLD will merge into Fold, with Fold becoming a wholly-owned subsidiary. Upon completion of the merger, the combined entity will remain listed on Nasdaq, trading under the new ticker symbol “FLD.”
This deal is pending regulatory and shareholder approvals, with the merger expected to close in the fourth quarter of 2024. FTAC Emerald shareholders will have their stock, currently valued at $10.72 per share, converted into Fold common stock. The final valuation of these stocks, expected to be between $365 million and $419.75 million, will depend on Bitcoin’s price at the time of the transaction’s closing.
Stockholder Vote and Crypto Industry Growth
The filing also announced that a special meeting of Emerald stockholders will take place to vote on the merger. The date for this meeting has yet to be determined.
Cabal Capital, a financial services firm, commented on the IPO, noting that Fold’s decision to go public highlights the increasing mainstream acceptance of cryptocurrency companies. The IPO is expected to provide Fold with additional capital, boosting its credibility and attracting potential investors, particularly those interested in the growing cryptocurrency market.
Fold’s Business and Expansion Plans
Fold operates a Bitcoin rewards platform, allowing users to earn cryptocurrency cashback on purchases from major retailers such as Amazon, Uber, and Starbucks. The company also offers a Bitcoin rewards debit card and features a prize wheel for earning additional BTC. Integrated with the Lightning Network, the platform supports crypto payments for services like mortgages and rent.
The S-4 filing revealed that Fold is planning to expand its services, including Bitcoin custody and trading programs, and to broaden its reach into states where it currently has limited support. These initiatives will include allowing users to fund accounts with Bitcoin deposits, extending access to Fold’s exchange for non-cardholders, and launching an over-the-counter (OTC) desk for larger crypto trades.
Additionally, the company aims to continue accumulating Bitcoin as part of its treasury investment strategy. As of July 31, 2024, Fold held 1,002 BTC, valued at approximately $63.2 million, solidifying its commitment to expanding its Bitcoin holdings.
With these expansion plans, the IPO, and the merger, Fold is positioning itself for significant growth in the evolving cryptocurrency and traditional finance space.
