Bitcoin Rewards App Fold to Go Public via $365M SPAC Merger

Key Takeaways:

• Bitcoin rewards app Fold has agreed to merge with a Nasdaq-traded SPAC.
• Deal values Fold at $365 million pre-money, expected to close in Q4 2024.
• Fold's balance sheet will hold over 1,000 BTC ($66 million) post-merger.

Bitcoin rewards app, Fold, will become a publicly traded company via a SPAC merger deal. This move marks a milestone for SPAC-related deals and highlights the growing mainstream adoption of cryptocurrency-related businesses.

Fold's SPAC Merger and Nasdaq Listing

According to a July 24 statement, Fold announced a proposed merger with FTAC Emerald Acquisition Corp., sponsored by Cohen Circle. The deal has received unanimous board approval and is expected to close in Q4 2024, pending regulatory and shareholder clearances.

SPACs are still happening.

Fold is a bitcoin rewards product… you get rewards for using your debit card, affiliate fees, etc.

Now planning to go public via SPAC at a $365M pre-money valuation pic.twitter.com/vL77DGUuq2

— Sheel Mohnot (@pitdesi) July 24, 2024

The proposed deal implies a pre-money equity valuation of $365 million for Fold. The firm anticipates holding over 1,000 BTC (approximately $66 million) on its consolidated balance sheet after the SPAC deal.

Upon completion, the combined entity will remain listed on the Nasdaq under a new ticker symbol yet to be announced.

Fold CEO, Will Reeves said:

“This transaction represents a significant step in Fold's mission to expand access to premium bitcoin financial services. Fold aims to make bitcoin available to everyone — through accessible, engaging and useful bitcoin products tailored to meet the needs of spenders, earners and savers.”

Since its launch in 2019, Fold claims to have processed over $2 billion in transaction volume and distributed $45 million in Bitcoin rewards to its customers. 

Fold offers users the opportunity to earn Bitcoin cashback on everyday purchases at popular retailers like Amazon, Uber, and Starbucks. 

The State of SPACs in the Crypto Market

SPACs have played a significant role in bringing crypto-related companies to public markets. 

Also known as “blank check” companies, SPACs are formed to raise capital through an IPO for the sole purpose of acquiring or merging with a private company, thereby taking it public.

Despite a slowdown during the crypto winter of 2022, recent successful SPAC mergers in the sector suggest a potential resurgence of interest.

For example, BitFuFu (operating as Finfront Holding Company) recently merged with Arisz Acquisition in March. This merger led to BitFuFu's shares and warrants being listed on Nasdaq under the symbols FUFU and FUFUW.

Just In : According to Forbes, BitFuFu, a Singapore-based #Bitcoin miner sponsored by Bitmain, has been trading on Nasdaq following a merger with Arisz Acquisition Corp. pic.twitter.com/faHxWuI9fR

— AltCoiners.live (@alt_coiners) March 2, 2024

The deal garnered approval from Arisz shareholders and secured $74 million in PIPE (Private Investment in Public Equity) commitments from strategic partners, including Bitmain and AntPool.

BitFuFu, a digital asset mining and cloud-mining service provider founded in late 2020, has demonstrated impressive growth. 

The company's revenue surged from a modest $100,000 in its inaugural year to $198.2 million in 2022, with continued strong performance in the first half of 2023, reaching $134.2 million.