Bitcoin rewards app Fold to go public via SPAC merger

Bitcoin fintech company Fold has agreed to go public through a merger with FTAC Emerald Acquisition.

Fold, a Bitcoin (BTC) fintech company that offers rewards for paying bills, is set to go public at a pre-equity valuation of $365 million through a merger with special purpose acquisition company FTAC Emerald Acquisition.

Fold will retain more than 1,000 BTC on its consolidated balance sheet following the transaction, and the proceeds from the merger will be used to “accelerate the growth of Fold’s operations and treasury,” Fold said in a July 24 press release.

The FTAC Emerald and Fold boards of directors unanimously approved the deal, the press release states. Pending regulatory approval, the deal is expected to close in the fourth quarter of this year.

Fold did not disclose what the new name of the merged company would be, saying it would be announced later.

Fold’s current management team will remain in place, with Fold CEO Will Reeves continuing in his role. Brace Young, FTAC Emerald director Andrew Hohns, and Ten31’s Jonathan Kirkwood will join him on the combined company’s board. Commenting on the merger, Reeves emphasized that it will allow the company to further develop its Bitcoin-centric offerings, including “value-added credit, lending, and insurance solutions.”

Founded in 2019 by William Reeves, Matthew Luongo, and Corbin Pon, Fold has raised a total of $20.2 million from 28 investors, including B37 Ventures, Bessemer Venture Partners, Dragonfly, and Draper Associates, according to PitchBook. The company says existing shareholders will face a “six-month lockup.”

However, this period may end earlier if the combined company’s stock price exceeds $12.00 per share for 20 trading days in any 30 consecutive trading days, beginning at least 90 days after the closing date.