The BTC-Based Rewards App will go public on the Nasdaq after an SPAC agreement is set to be wrapped up by the end of this year.
Bitcoin-based rewards application Fold has declared its intention to become a publicly traded company on the Nasdaq, with an implied valuation of $365 million.
According to a July 24 statement, Fold has entered into a business combination agreement with a particular purpose acquisition company (SPAC), FTAC Emerald Acquisition, to go public.
In contrast to a conventional IPO, which involves the issuance of new shares by a private company and their subsequent sale on a public exchange, a SPAC transaction consists of the merger of a private company with a proxy company, resulting in the company’s public trading.
After the SPAC transaction is finalized, the folder will launch on the Nasdaq under a disclaimer.
Fold is a debit card cashback application that enables users to pay for commonplace items and bills at both in-store and online retailers in both fiat and BTC. Variable Bitcoin-denominated rewards are awarded to users for conducting transactions via the application.
Transaction to be finalized in the fourth quarter
Fold stated that the directors of both companies had unanimously endorsed the SPAC transaction, and it is anticipated that the transaction will be finalized in the fourth quarter of 2024.
“The transaction implies a pre-money equity valuation for Fold of $365 million.”
The firm stated that it is expected that Fold will have over 1,000 BTC on its consolidated balance sheet after the transaction.
Fold declared that it would allocate the proceeds of the merger agreement with FTAC Emerald to “further the expansion” of its operations and treasury.
According to the payments app, existing shareholders will be subjected to a six-month lock-up. However, this will be modified if the company’s share price surpasses $12 within 90 days of Fold being listed on the Nasdaq.
It is anticipated that legacy shareholders who owned shares in the company immediately before the company’s public offering will possess approximately 71% of its outstanding shares.
The company has distributed over $45 million in Bitcoin-based rewards to its consumers and processed over $2 billion in transaction volume since its inception in 2019.
Fold raised $2.5 million in September 2019 in a round that included the participation of Craft Ventures, Goldcrest Capital, Slow Ventures, Fulgur Ventures, and digital asset management firm CoinShares.