As a seasoned observer of the dynamic world of fintech and cryptocurrencies, I find the recent move by Fold to go public through an IPO an intriguing development. Having closely followed the rise of Bitcoin and its related businesses over the years, it’s fascinating to see a Bitcoin rewards app like Fold making strides in traditional finance.
Fold, a Bitcoin rewards app, has begun the steps towards going public by submitting its IPO application to the U.S. Securities and Exchange Commission (SEC).
The filing is made after the company announced in July its intention to become publicly traded by merging with FTAC Emerald Acquisition Corporation.
Details of the Merger
The documents show that on July 24, 2024, FTAC Emerald and its affiliate, EMLD Merger Sub Inc., signed an agreement. According to this agreement, EMLD Merger Sub will be merged into Fold, with Fold continuing as a fully-owned subsidiary of the special acquisition company.
After obtaining necessary regulatory and shareholder approvals, the merged entity intends to continue its listing on Nasdaq, using the new trading symbol “FLD.” The merger, supported by both boards, is projected to be finalized in the last quarter of 2024.
According to the agreement, owners of FTAC Emerald shares (worth approximately $10.72 each) will see their shares transformed into Fold common stocks. They are projected to receive anywhere between $365 million and $419.75 million in Emerald Class A common stock. The exact value will depend on the price of Bitcoin at the time of the deal’s completion.
Additionally, the document disclosed an upcoming extraordinary gathering for Emerald shareholders to decide on the proposed merger. The specific date is yet to be decided.
As per a blog post from Cabal Capital, the decision by Fold, a financial services firm, to go public underscores an increasing openness towards cryptocurrency businesses within traditional finance. The article suggests that this Initial Public Offering (IPO) will grant Fold additional funds and bolster its credibility, possibly drawing investors with an affinity for digital currencies via conventional investment avenues.
Expansion Initiatives
Fold’s main operation revolves around a Bitcoin-based platform that grants users cashback on transactions made with merchants such as Amazon, Uber, and Starbucks. In addition to this, they provide a debit card that offers rewards and a chance to win additional coins through a spinning wheel feature. Furthermore, it’s connected to the Lightning Network, enabling users to earn cryptocurrency by making payments for mortgages and rent.
The disclosed documents reveal that the company intends to broaden its service offerings, encompassing their BTC storage and trading platforms, to cater to users residing in states that were previously excluded. Additionally, Fold will incorporate Bitcoin deposits as a funding method, extend access to its exchange for non-Fold cardholders, and establish an over-the-counter (OTC) platform for larger transactions.
The report disclosed that the organization intended to keep amassing Bitcoin under their investment strategy for treasury reserves. By the end of July 31, 2024, they owned around 1,002 Bitcoins, which were worth approximately $63.2 million.
Read More
- W PREDICTION. W cryptocurrency
- AEVO PREDICTION. AEVO cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- REF PREDICTION. REF cryptocurrency
- EOS PREDICTION. EOS cryptocurrency
- SUKU PREDICTION. SUKU cryptocurrency
- CTC PREDICTION. CTC cryptocurrency
- TFUEL PREDICTION. TFUEL cryptocurrency
- ETC PREDICTION. ETC cryptocurrency
2024-10-08 14:40