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.
Coinbase CEO Brian Armstrong has spotlighted a significant acceleration in institutional crypto adoption, driven largely by the surging popularity of exchange-traded funds and increased use of Coinbase Prime among major corporations.
The latest market turbulence, fueled by geopolitical tensions and investor fear, offered a textbook case of how sentiment swings and whale behavior shape crypto price action.
Jefferies chief market strategist David Zervos believes an upcoming power shift at the Federal Reserve could benefit U.S. equity markets.
Anchorage Digital, a federally chartered crypto custody bank, is urging its institutional clients to move away from major stablecoins like USDC, Agora USD (AUSD), and Usual USD (USD0), recommending instead a shift to the Global Dollar (USDG) — a stablecoin issued by Paxos and backed by a consortium that includes Anchorage itself.