Bitcoin Rewards App Fold Gears Up for IPO

Bitcoin rewards app Fold has submitted its S-4 filing to the US Securities and Exchange Commission [SEC].

Details

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• The firm intends to go public via a co-registrant agreement with FTAC Emerald Acquisition Corp — a Nasdaq-traded special purpose acquisition company
• According to the filing, holders of stocks to be converted into Fold common stocks will likely receive an aggregate sum of $365 million  or up to $419.75 million

• The figure is subject to change in accordance to the price of BTC
• The firm is also looking to expand its custody and trading program to grant access to more users in previously
• It will also open its exchange product to non-Fold cardholders, and integrate support for larger orders via an OTC desk service

Why should you pay attention?

• The S4 filing is an official registration statement filed to the SEC by a publicly traded company undergoing a merger or acquisition
• If approved by regulators and shareholders, the newly integrated company will remain listed on the Nasdaq
• It will operate under the new FLD ticker symbol
• Emerald stockholders have been notified about a special meeting to vote on the business combination  
• As a part of its Bitcoin treasury investment strategy, Fold will continue to accumulate additional BTC
• The company owned around 1,002 BTC in its investment treasury as of the end of July

Who said what?

• The filing noted,

“On July 24, 2024, FTAC Emerald and EMLD Merger Sub Inc., a wholly-owned subsidiary of Emerald, entered into a Merger Agreement with Fold”

• It should also be noted that,

“Merger Sub will be merged with and into Fold with Fold surviving the Merger as a wholly-owned subsidiary of Emerald”

• Executives further underlined in the filing,

“We believe existing macro conditions to be favorable towards adding additional Bitcoin to our balance sheet at current market prices”

Zooming out

• Fold and Visa cemented their partnership earlier this year
• The US payments giant now serves as the exclusive network partner for Fold's prepaid debit products in North America, Europe, and Latin America and the Caribbean
• The firm also intends to  empower existing local FinServ companies to launch their own BTC rewards via its infrastructure