- Fold has agreed to merge with FTAC Emerald
- Fold will then go public and be traded on the stock exchange
- The deal values Fold at $365 million before trading
- Fold’s existing shareholders will own approximately 71% of the combined company
- The transaction is expected to close in Q4 2024
Fold, a Bitcoin financial services company, and FTAC Emerald, a publicly-traded special purpose acquisition company, have agreed to merge their, making Fold a NASDAQ-listed public company.
What Are the Details of Fold’s Merger With FTAC Emerald?
The deal values Fold at $365 million pre-trade, and Fold is expected to have more than 1,000 BTC on its balance after the transaction. The transaction is expected to close in Q4 2024, subject to regulatory approval, shareholder approval, and the satisfaction of other customary closing conditions.
Existing Fold shareholders will be subject to a six-month share sale lock-up, which may be lifted earlier if the combined company’s stock price exceeds $12.00 per share for 20 trading days out of 30 consecutive trading days. Fold’s existing shareholders will own approximately 71% of the combined company, and Fold’s team will continue to manage the company.
Investors and security holders need to read the prospectus and other relevant documents to be filed with the SEC to own the situation and its details fully.
What Is the Importance of Fold’s Merger With Ftac Emerald?
Fold, founded in 2019, has made significant moves in integrating Bitcoin across traditional financial services. They offer various Bitcoin financial services, including rewards, debit cards, and bill payment services.
The company has shown remarkable results, processing over $2 billion in transactions and issuing over $45 million in Bitcoin rewards.
“This transaction represents a significant step in Fold’s mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams,” said Will Reeves, CEO of Fold. “Fold aims to make bitcoin available to everyone-through accessible, engaging, and useful bitcoin products that are customized to meet the needs of spenders, earners, and savers.”
This merger should greatly expand its capabilities and take it into new financial markets and solutions. “Looking forward, Fold will continue to build on bitcoin, with a road map that envisions value-added credit, lending, and insurance solutions,” continued Mr. Reeves. “Our products are designed to enhance the savings and the financial freedom of our community. Our business philosophy aligns Fold with the growth of bitcoin through unique and accessible financial products designed by bitcoiners, for bitcoiners.”
Conclusions
If the acquired opportunities are utilized in the best possible way, these big deals among successful crypto developers should positively impact the entire crypto industry.
Of course, there are also concerns that sometimes companies going private have more freedom to make brave moves and offer more innovative solutions without fearing the price of their own shares.
