Fold Takes Step Towards NYSE IPO Listing With SEC S-4 Submission

Fold files SEC S-4, progressing toward a Nasdaq listing after merging with FTAC Emerald. The merger, valued between $365M and $419.75M, ties its valuation to Bitcoin’s price.

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Pardon Joshua
Pardon Joshua
Pardon Joshua is a seasoned crypto journalist with three years of experience in the rapidly evolving blockchain and digital currency space. His insightful articles have graced the pages of reputable publications such as CoinGape, BitcoinSensus, and CoinGram.us, establishing him as a trusted voice in the industry. Pardon's work combines in-depth technical analysis with a keen understanding of market trends, offering readers valuable insights into the complex world of cryptocurrencies.

Bitcoin rewards app Fold is heading in a big step toward opening those doors to the public by submitting its S-4 filing with the U.S. Securities and Exchange Commission (SEC). This took the company which announced in July it plans to take itself public via a merger with FTAC Emerald Acquisition Corp., one crucial step. 

According to the filing, on July 24 2024, FOLD and its subsidiary, EMLD Merger Sub Inc., entered into a deal, where EMLD Merger Sub will be absorbed by FOLD. Post merger, Fold will remain a wholly owned subsidiary of the special purpose acquisition company.

Listing Details and Financial Implications

Upon securing necessary regulatory and shareholder approvals, the newly formed entity plans to maintain its listing on Nasdaq, trading under the new ticker symbol “FLD.” This transition is expected to be completed in the fourth quarter of 2024, marking a significant milestone for Fold and the broader cryptocurrency industry.

The merger deal, which has received unanimous endorsement from the boards of both companies, includes provisions for FTAC Emerald stockholders. 

The shares will be converted into Fold common stock, each valued at $10.72. The total valuation of this conversion is expected to range from $365 million to $419.75 million in Emerald Class A common stock with the final valuation dependent upon the price of Bitcoin at the time of closing. The volatile cryptocurrency market and its relationship with traditional finance is one that feeds on this variable valuation.

Expansion Plans and Industry Impact

The growing acceptance of cryptocurrency businesses in traditional finance likely helps explain why Fold is moving towards an IPO. These have the potential to improve Fold’s capital and credibility to the point that investors now interested in digital currency would consider investing through traditional investment channels. The company is set to substantially expand its core business, a Bitcoin rewards platform providing cashback on purchases with big retailers. 

It will also roll out Bitcoin custody and trading programs to new states, add Bitcoin deposits as a funding option, provide access to its exchange to non-Fold cardholders. These developments indicate Fold’s ambition to broaden its services and user base, further bridging the gap between traditional finance and the cryptocurrency sector.

Financial Position and Future Outlook

From Fold’s S-4 filing comes just how it has positioned itself financially as well. As part of the company’s treasury investment plan, it will keep buying Bitcoin. As of writing on July 31 2024, there are 1,001.71 BTC worth $63.2M in Fold. This is a very big Bitcoin holding and it’s a sign that the company really believes in crypto and they do have a big presence in this space. 

However, one of such events that will be critical to whether this merger continues is the upcoming special meeting of Emerald stockholders to vote on the business combination, which has yet to be scheduled.

With NYSE on the horizon, Fold serves as a prime example of how crypto focused businesses have been optimally interwoven with traditional financial systems, setting a new benchmark both for financial institutions and a crypto startup.

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