In a milestone moment for the burgeoning world of bitcoin rewards, fintech startup Fold made its much-anticipated debut on the Nasdaq stock exchange on Wednesday. The company, which incentivizes retail spending with bitcoin cashback, went public through a merger with special purpose acquisition company (SPAC) FTAC Emerald Acquisition Corp.
Shares of the newly ticker FLD surged over 30% in initial trading, briefly touching $13 before retreating to the $11 range as the session progressed. The volatile first day marked the latest chapter in Fold’s rapid ascent from niche crypto rewards app to publicly traded pioneer at the intersection of bitcoin and consumer finance.
A New Model for Bitcoin Businesses?
With its high-profile listing, Fold has become the newest member of a small but growing contingent of public companies holding bitcoin on their balance sheets. The firm’s SEC filings reveal Fold custody of approximately 1,000 BTC, worth $96 million at current prices, establishing it in the ranks of Michael Saylor’s MicroStrategy and other corporate adopters.
While MicroStrategy and others like Tesla made headlines by converting cash reserves to bitcoin, Fold represents a new breed of crypto-native businesses with BTC at the core of their operating models. By issuing bitcoin rewards, Fold aims to drive wider adoption and real-world use cases for the original cryptocurrency.
We see an enormous opportunity to bring bitcoin to the masses through rewards that make every purchase an investment. As a public company, we’ll be able to rapidly scale this model globally.
Will Reeves, Fold CEO
Stacking Sats: Fold’s Bitcoin Rewards
Central to Fold’s proposition is the concept of “stacking sats” – accumulating small fractions of bitcoin over time through regular spending and rewards. By gamifying the earning of satoshis, or “sats” (the smallest unit of BTC), Fold aims to make bitcoin saving an engaging everyday habit.
- Spin-to-Win: Fold’s signature “spin” rewards program offers users satoshi prizes for transactions, combining shopping with a touch of casino-like fun
- Bitcoin Debit Card: The Fold app issues a Visa debit card that delivers bitcoin rewards on every purchase, essentially turning spending into automatic BTC investing
- Merchant Partnerships: Fold has built a network of top retailers like Amazon, Starbucks, and Uber where users can earn extra bitcoin rewards
This gamified approach to “stacking sats” has resonated with Fold’s core millennial demographic, driving rapid growth in app installs and transaction volume. The company reports over 250,000 active users, $100 million in annualized payment volume, and 25 billion sats earned by customers to date.
From Private to Public: Inside the SPAC Deal
To fuel the next stage of growth, Fold turned to the red-hot SPAC market for its leap to the public markets. The merger with FTAC Emerald, led by fintech entrepreneur Betsy Cohen, netted Fold $100 million in cash proceeds and valued the combined entity at $450 million.
The deal allowed Fold to sidestep the lengthy traditional IPO process and access public capital on an accelerated timeline. With bitcoin still in the early stages of mainstream adoption, the ability to scale quickly was key for Fold.
In the fast-moving world of crypto, speed is a huge strategic advantage. As a public company, we’ll have the resources and currency to grow at bitcoin speed.
Matt Luongo, Fold Head of Protocol
Bitcoin on the Balance Sheet
As part of the SPAC transaction, Fold converted $50 million of its cash holdings to bitcoin – a significant allocation relative to the size of its balance sheet. The 1,000 BTC position establishes Fold as a new type of public company with direct exposure to bitcoin price appreciation.
For Fold, the large bitcoin stake is more than just a treasury management strategy – it’s a competitive advantage in the marketplace. By maintaining BTC reserves, Fold assures it can meet customer bitcoin reward liabilities in any market environment.
Holding bitcoin on our balance sheet aligns our interests with those of our users and demonstrates long-term commitment to our bitcoin rewards model. It’s a strategic asset that supports everything we do.
Erin Collard, Fold CFO
Fold’s Future: Bringing Bitcoin to Billions
Flush with fresh capital and listed on the Nasdaq, Fold now sets its sights on aggressive expansion. The company plans to roll out its debit card and rewards platform across new markets in Europe, Asia, and Latin America while adding more merchant partners and reward opportunities.
In tandem with geographic growth, Fold is developing new bitcoin-based financial products to sit alongside its core rewards offering. These include a bitcoin savings account with high yield paid in BTC, a bitcoin cashback credit card, and bitcoin remittance and payroll services.
The goal is to build a comprehensive bitcoin-native fintech ecosystem that brings BTC to billions around the world through user-friendly saving, spending, and investing products. Having blazed the trail in public markets, Fold hopes to lead the way for a new wave of listed crypto companies driving mainstream adoption.
We see bitcoin rewards as the ultimate trojan horse for bringing crypto to the masses. By listing on Nasdaq, we’re validating bitcoin’s place in the financial mainstream and showcasing Fold as the category leader. This is only the beginning.
Will Reeves, Fold CEO
