Fintech Fold Intends To Go Public, Touts Bitcoin on Books

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Important points

Fold will go public through a merger with FTAC Emerald Acquisition Corp. in a transaction expected to close in the fourth quarter of this year.

The financial services company allows users to easily get in and out of Bitcoin, while also providing cashback rewards in Bitcoin for regular spending habits.

Fold can be seen as a competitor to Block’s Cash App and focuses more on Bitcoin.

Bitcoin-focused financial services provider Fold plans to go public through a merger with FTAC Emerald Acquisition Corp. (EMLD), a special purpose acquisition company (SPAC).

Fold offers a cashback debit card and the ability to buy and sell bitcoin directly from Fold accounts, among other services. It can be considered a minor competitor to Block’s (SQ) Cash App, which also makes it easy to buy and sell bitcoin and has previously enabled cryptocurrency cashback rewards.

The merger, which is expected to be completed in the fourth quarter of 2024 following regulatory approvals, will value Fold at $365 million and list its shares on Nasdaq.

Fold’s Bitcoin Treasury Could Become an Asset

Fold has another advantage: it will own Bitcoin (BTC).

“Following the transaction, Fold is expected to have more than 1,000 BTC on its consolidated balance sheet. Fold expects to use the proceeds to accelerate the growth of Fold’s operations and treasury,” the company said in a statement on Wednesday. At bitcoin prices around $66,000 on Wednesday, that holding would be worth around $66 million.

When listed, Fold will join a growing list of well-established public companies with bitcoin on their books. MicroStrategy (MSTR) is the most notable, with a stockpile of 214,400 bitcoins as of April 26, which would be worth around $14 billion at current prices (assuming no change in the size of the holding). Block also held 8,038 bitcoins on its balance sheet as of March 31 (currently worth more than $530 million).

Optimism around spot bitcoin exchange-traded funds (ETFs) and the bitcoin halving earlier this year, and more recently the US presidential election, has pushed bitcoin prices higher this year, and that has translated into gains for the stocks of some companies that own bitcoin. For example, bitcoin has gained about 49% since the beginning of the year, and MicroStrategy shares are up almost 165% in the same period.

Read the original article on Investopedia.