Fold offers a cashback debit card that provides Bitcoin rewards instead of the traditional rewards expected from other products.
The company aims to go public through a merger with SPAC Emerald Acquisition.
Bitcoin rewards app Fold plans to go public on Nasdaq through a merger with special purpose acquisition company (SPAC) Emerald Acquisition Corp. (EMLD).
New York-based Fold offers a cash-back debit card that offers bitcoin rewards instead of the traditional rewards expected from other related products. Fold’s cards have generated more than $2 billion in transaction volume and distributed more than $45 million in rewards, according to an announcement Wednesday.
The transaction, which was unanimously approved by the boards of directors of both firms, will have a pre-money equity valuation of $365 million, and will also have more than 1,000 BTC ($67 million) on the entity’s balance sheet post-transaction.
Fold has not yet announced the expected closing date of the merger or under what ticker symbol it will trade on Nasdaq.
SPACs were a popular way for crypto companies to go public during the last bull cycle, but with the onset of crypto winter in 2022, several quiet SPACs have been canceled.
It’s unclear whether this bull cycle will see more of these types of deals happen. Bitcoin financial services firm Swan scrapped its SPAC plans on Monday amid a restructuring that also saw it spin off its managed mining unit and reduce staff at several units.
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