Bitcoin financial services platform Fold announced plans Wednesday to go public via a special purpose acquisition company (SPAC), in a deal that values the firm at $365 million.
To facilitate the transition, Fold has reached an agreement with FTAC Emerald Acquisition Corp. through which the businesses will combine, with the intended result being that Fold will be listed on the Nasdaq under a new ticker symbol at a later, unspecified date.
The transaction implies that Fold has a pre-money equity valuation of $365 million. Following the combination, Fold expects to have more than 1,000 Bitcoin (over $66 million worth as of this writing) on its balance sheet.
Since its founding in 2019, Fold claims to have processed over $2 billion in volume through services including bill pay, debit cards, and insured accounts. Customers accrue Bitcoin rewards by using Fold’s services, and can purchase BTC through the platform without fees. Fold says it has distributed $45 million in total Bitcoin rewards to customers since inception.
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Preexisting Fold stockholders are expected to own about 71% of the combined company’s outstanding shares. Post-transaction, these shareholders will be subject to a six-month lockup period, with some exceptions.
If the transaction closes as anticipated in the fourth quarter of this year, Fold will become a rare cryptocurrency company to succeed in its efforts to transition to being publicly held. Just this week, fellow Bitcoin financial services firm Swan announced that it had scrapped its plans to pursue an IPO as it implemented widespread layoffs.
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Securing regulatory approval will be a crucial step for Fold. As the U.S. Securities and Exchange Commission has increased its scrutiny of crypto companies in recent years, it has blocked several high-profile firms from going public. These include Bullish Global, eToro Group, and Circle Internet Financial, all of which sought to be listed on various stock exchanges through SPAC mergers as well.
Decrypt reached out to Fold for comment but did not receive an immediate response.
