Bitcoin Rewards App Fold Plans Merger with FTAC Emerald Acquisition Corp.

Fold, a bitcoin rewards app, has struck an agreement with FTAC Emerald Acquisition Corp., a Nasdaq-traded SPAC sponsored by Cohen Circle, for a proposed merger that will make Fold a publicly-listed company.

About Fold

Fold allows users to earn bitcoin cashback from everyday purchases at retailers such as Amazon, Uber, and Starbucks. Its offerings include a debit card with bitcoin rewards, opportunities to earn extra bitcoin via a rewards wheel, and features integrated with the Bitcoin Lightning Network like recurring buys and cashback for bill payments on things like mortgages and rent. Users can also round up purchases into bitcoin and store funds in insured accounts.

The merger, which has received unanimous approval from the boards of both companies, is expected to close in Q4 2024, contingent upon regulatory and shareholder approvals. The new company plans to remain on Nasdaq under a yet-to-be-announced ticker symbol.

“This transaction represents a significant step in Fold’s mission to expand access to premium bitcoin financial services,” said Fold CEO Will Reeves. He emphasized that Fold aims to make bitcoin accessible through user-friendly products tailored for spenders, earners, and savers.

Fold’s Valuation

Fold claims to have processed over $2 billion in transactions and has distributed $45 million in bitcoin rewards since its launch in 2019, resulting in a pre-money equity valuation of $365 million from the proposed deal.

Post-merger, Fold’s management, led by Reeves, will continue to oversee operations, alongside FTAC Emerald’s leadership. Fold expects to hold over 1,000 BTC (approximately $66 million) on its balance sheet, using proceeds to accelerate growth.

Existing Fold stockholders will face a six-month lock-up period with the possibility of early release if the stock price exceeds $12.00 per share for a specified period. Legacy shareholders are projected to retain about 71% of the combined company’s shares.

Reeves highlighted future plans, stating that Fold envisions adding credit, lending, and insurance solutions to enhance financial freedom and savings for its users, designed by bitcoiners for bitcoiners.

Fold and FTAC Emerald will hold a joint investor call on Wednesday at 8:30 a.m. ET. Recently, Fold also announced a cashback feature for ACH transfers, offering up to 1.5% in bitcoin.