Outside Source
Fold, a popular Bitcoin financial services platform, has confirmed arrangements to become a publicly traded company on the NASDAQ stock exchange.
The firm’s entry will add another tally to the growing list of public stocks that keep a large swath of Bitcoin directly on their balance sheet.
Bitcoin Banking Gone Public
Per a press release on Wednesday, Fold said it had entered a definitive agreement with FTAC Emerald, a special purpose acquisition company.
The proposed business combination will allow Fold to become a public company. Though it will first inherit the EMLD ticker from Emerald, Fold will remain on the NASDAQ under a new ticker to be announced later.
“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 is a centralized financial service that helps expand the utility of its customers’ BTC by bridging Bitcoin to the world of traditional banking.
Users can buy and withdraw Bitcoin, split their paychecks between cash and BTC, and earn sats by making purchases using their FOLD debit card. Since inception in 2019, Fold has processed $2 billion in aggregate transaction volume, and distributed over $45 million in BTC rewards.
The company’s latest deal gave it a proposed equity valuation of $365 million. Legacy shareholders in Fold are expected to own 71% of the business after the transaction is completed.
“Looking forward, Fold will continue to build on bitcoin, with a road map that envisions value-added credit, lending, and insurance solutions,” Reeves added.
Bitcoin On The Books
Upon going public, Fold anticipates that it will hold over 1000 BTC on its consolidated balance sheet – worth over $65.6 million at writing time.
This would make Fold the next publicly traded company in the United States with a significant Bitcoin treasury position. MicroStrategy (MSTR), the first company to adopt the strategy, has acquired over 226,000 BTC, and its stock is up 144% year to date.
Japanese investment firm MetaPlanet has also benefitted massively from its Bitcoin Treasury strategy adopted earlier this year. Holding Bitcoiin worth $14.8 million, the firm’s stock is up 1,775% yearly at writing time.
This article first appeared at CryptoPotato
