Fold Inc., known for its Bitcoin rewards program, is reportedly on the brink of a major business move that could significantly impact its future and the broader cryptocurrency industry.
As the crypto sector shows signs of revival, the company is nearing a merger with a special purpose acquisition company (SPAC) to go public.
Sources indicate that Fold Inc. is in the final stages of negotiating a merger with FTAC Emerald Acquisition Corp, a SPAC led by Betsy Cohen. This merger could value Fold at around $500 million. An official announcement is anticipated soon.
Fold Inc. is part of a growing trend of cryptocurrency companies aiming to go public. Bitcoin mining firm Genesis Digital Assets is planning an IPO, and Northern Data AG, which now focuses on AI computing services, is also considering a public listing.
The potential merger of Fold Inc. comes amid a surge in crypto startup funding. In the first quarter of 2024, valuations of crypto startups reached $2.4 billion, marking a significant increase despite a global dip in venture capital investments.
This growth is driven by lower interest rate expectations and the launch of U.S. bitcoin spot ETFs.
Market analysts are closely watching the impact of Donald Trump’s growing influence over the cryptocurrency space, with speculation mounting that he may announce a strategic Bitcoin reserve ahead of the White House Cryptocurrency Summit on March 7.
Solana co-founder Anatoly Yakovenko has voiced strong opposition to the idea of a U.S. government-controlled crypto reserve, arguing that such a move would undermine decentralization.
The U.S. government’s decision to add Bitcoin and other cryptocurrencies to its strategic reserves has sparked debate, with MicroStrategy’s Michael Saylor weighing in on the matter.
Speculation is mounting over the U.S. government’s decision to integrate Bitcoin into its financial strategy, with some experts questioning its impact on the dollar.