Fold, a Bitcoin rewards and financial services application, has filed its S-4 registration with the US SEC, aiming to go public through a merger with FTAC Emerald Acquisition Corp., a Nasdaq-listed special purpose acquisition company. The proposed deal, announced in July 2024, represents Fold's next chapter on the Nasdaq stock market.
The S-4 filing on the 7th of October 2024 contains details of the actual merger plan. FTAC Emerald and EMLD Merger Sub Inc., a subsidiary of Emerald, will have the former merge into Fold, and the resulting entity will be a wholly owned subsidiary of Emerald.
The proposed transaction is expected to be completed in the fourth quarter of the current calendar year, subject to regulatory and shareholder ratifications. This planned acquisition will further establish Fold in the market by improving its access to funds while enabling the company to grow and evolve in offering cryptocurrency rewards.
The financial specifics of the merger reveal significant growth potential for Fold. Upon completion, Fold stockholders will receive approximately $365 million to $419.75 million in Emerald Class A common stock, valued at $10.72 per share. This valuation is contingent on Bitcoin's fluctuating market price, showcasing Fold's inherent connection to cryptocurrency market dynamics.
Fold's proactive approach includes plans to expand its custody and trading programs to new states previously unsupported, introduce Bitcoin deposits as a funding option, and open its exchange product to non-cardholders. Furthermore, the company aims to accommodate more significant transactions through an over-the-counter (OTC) desk service. These enhancements are designed to meet the growing demand for cryptocurrency financial services and improve user accessibility and satisfaction.
Fold stated that by the end of July 2024, it would possess more than 1,002 BTC in its investment war chest valued at more than $63.2 million. This large Bitcoin stash shows that Fold is serious about weaving Bitcoin into everyday payments and that it thinks Bitcoin is valuable.
The firm's strategy to continue accumulating Bitcoin aligns with its assessment of favorable macroeconomic conditions and its vision to mainstream cryptocurrency use through innovative financial products.
Fold's merger with FTAC Emerald is more than a financial transaction; it represents a strategic alignment to enhance Fold's capabilities in delivering Bitcoin-powered financial solutions. These include rewards on everyday purchases, zero-fee Bitcoin trading, and insured fund custody