Fold is set to go public following a merger with FTAC Emerald, with potential stockholder gains reaching $419.75 million depending on Bitcoin’s value.
Bitcoin rewards app Fold is on the verge of going public, following the submission of its S-4 filing with the US Securities and Exchange Commission (SEC) on Monday. The filing comes in the wake of Fold’s announcement in July regarding its merger with FTAC Emerald Acquisition Corp, a special purpose acquisition company (SPAC) listed on Nasdaq.
The S-4 filing lists FTAC Emerald as the registrant and Fold as the co-registrant. According to the statement, the two companies have entered into a Merger Agreement, with Emerald’s subsidiary, EMLD Merger Sub Inc, merging with Fold.
Once completed, Fold will become a wholly-owned subsidiary of Emerald, pending approval from regulators and shareholders. The deal is expected to close by the end of 2024.
Shareholders of Emerald can expect their stocks to be converted into Fold common stocks. The filing estimates that stockholders could receive up to $419.75 million in Emerald Class A common stock, depending on Bitcoin price BTC $94 751 24h volatility: 0.3% Market cap: $1.88 T Vol. 24h: $23.33 B at the time of the merger.
Bitcoin Expansion Plans
Fold is known for its Bitcoin rewards platform, which allows users to earn Bitcoin cashback on everyday purchases at popular retailers such as Amazon. The platform also offers a Bitcoin rewards debit card, where users can accumulate Bitcoin through transactions.
With its upcoming public debut, Fold has also outlined future plans for expansion. According to the filing, the company intends to grow its custody and trading program, making it available to users in previously unsupported US states. Fold also plans to introduce Bitcoin deposits as a funding option and open its trading services to non-cardholders. A notable addition will be support for over-the-counter (OTC) desk services to accommodate larger orders.
Fold’s growth strategy also includes expanding its Bitcoin treasury. As of July 31, the company held 1,002 BTC (around $63.2 million) in its treasury, and it has plans to continue accumulating Bitcoin in response to favorable macroeconomic conditions. The company’s treasury investment strategy aligns with that of several high-profile Bitcoin holders, or “whales”, who have recently ramped up their BTC accumulation.
Bitcoin Price
Fold’s decision to go public and its aggressive Bitcoin accumulation strategy comes at a time when the cryptocurrency market is gaining momentum. At the time of writing, Bitcoin is trading at $62,287, marking a 2% decline over the past 24 hours. The cryptocurrency has seen a 14% rise in the last month, reflecting increasing investor optimism. The Crypto Fear and Greed Index currently sits at 49, indicating neutral sentiment, a notable improvement from last month’s low of 29.
However, Bitcoin still has to climb another 15% to break its previous all-time high of $73,750, a target that many are closely watching as market conditions evolve.
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