Bitcoin rewards filing an application to go public on the Nasdaq through a SPAC contract

Bitcoin-based rewards app Fold has announced plans to launch a publicly traded company on the Nasdaq at an implied valuation of $365 million.

FOLD has signed an agreement with special purpose acquisition company (SPAC) FTAC Emerald Acquisition to take the business combination to the public, according to a July 24 statement.

Unlike a traditional IPO — where a private company issues new shares and then sells them on a public exchange — a SPAC transaction occurs when a private company merges with a shell company and goes public.

After the SPAC transaction is completed, the fold will launch on the Nasdaq at a yet-to-be-announced ticker.

Fold is a debit card reimbursement app that allows customers to pay for everyday items and bills in both fiat and BTC online and at in-store retailers. Users are paid in variable Bitcoin-allocated rewards for making purchases through the app.

Agreement to close in the fourth quarter

The SPAC transaction has been unanimously approved by the directors of both companies and is expected to close in the fourth quarter of 2024.

“The transaction represents a $365 million fold in pre-cash equity.

“Following the transaction, Fold is expected to have more than 1,000 BTC on its consolidated balance sheet,” the company said.

Fold said it would use Fold's operations and treasury from the merger agreement with FTAC Emerald to “accelerate growth”.

The payment application said existing shareholders would be subject to a six-month lockup, but said the fold would be revised within 90 days of listing on the Nasdaq if the company's share price was above $12.

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Legacy shareholders — anyone who owned stock in the company before the company went public — are expected to hold 71 percent of the company's outstanding shares.

In the year Since its inception in 2019, the organization has handled more than $2 billion in transaction volume and distributed more than $45 million worth of Bitcoin-based rewards to its users.

In September 2019, Fold raised $2.5 million in a round that featured participation from Craft Ventures, Goldcrest Capital, Slow Ventures, Fulgur Ventures, and digital asset management company CoinShares.

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