US-based Bitcoin financial services firm Fold prepares for expansion with a convertible note investment and a potential $10 million boost.
Fold, Inc., a US-based Bitcoin financial services provider, has secured $20 million in convertible note financing from ATW Partners. According to a press release issued Monday, December 30, this capital injection will fuel the company’s operational expansion and product development ahead of its anticipated public listing in early 2025.
The deal also includes a provision for an additional $10 million investment, contingent upon the successful completion of Fold’s planned business combination with FTAC Emerald Acquisition Corp.
Innovative Financing Through Convertible Notes
Fold’s latest funding was secured through a convertible note, a financial instrument that allows investors to convert debt into equity at a predetermined price. The $20 million note, backed by Fold’s assets, including a portion of its proprietary Bitcoin BTC $66 439 24h volatility: 0.1% Market cap: $1.33 T Vol. 24h: $26.23 B holdings, will mature three years after the company becomes publicly listed.
The note’s conversion price is set at $11.50 per share, representing a premium over the proposed valuation for the business combination.
Per the press release, ATW Partners also received warrants as part of the deal, enabling them to purchase Fold’s shares at $12.50 per share in the future. If the additional $10 million is granted, ATW will receive further warrants with an exercise price of $11.50 per share.
The financing provides Fold with immediate capital while aligning investor interests with the company’s long-term growth strategy. According to Fold, the funds will support key growth initiatives, including scaling its Bitcoin rewards programs, developing new financial products, and expanding its user base.
A Significant Milestone
Will Reeves, the CEO of Fold, views the recent financing as a major step in the company’s mission to deliver premium Bitcoin financial services while fostering trust and compliance in the crypto space.
“This financing represents a significant milestone for Fold, combining traditional convertible debt structures with digital asset backing in a way that provides both immediate capital and long-term alignment with our shareholders. We are grateful for ATW Partners’ support and confidence in our mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams,” he said.
The firm is on track to merge with FTAC Emerald Acquisition Corp., a special purpose acquisition company (SPAC), by the first quarter of 2025. This business combination is expected to culminate in Fold’s public listing, pending regulatory approvals from the US Securities and Exchange Commission (SEC) and shareholder consent.
The merger will provide Fold with access to broader capital markets and strengthen its position as a major player in Bitcoin financial services.
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