Fold, Inc. Secures $20 Million in Financing for Expansion and Listing
Fold, Inc., a US-based Bitcoin financial services provider, has secured $20 million in convertible note financing from ATW Partners. This funding will support the company's operational expansion and product development ahead of its anticipated public listing in early 2025.
The deal includes an option for an additional $10 million investment, contingent upon the successful completion of Fold’s planned business combination with FTAC Emerald Acquisition Corp.
Innovative Financing Through Convertible Notes
Fold's funding was obtained through a convertible note, allowing investors to convert debt into equity at a predetermined price. The $20 million note is backed by Fold's assets, including part of its proprietary Bitcoin holdings, and will mature three years after the company goes public.
The conversion price is set at $11.50 per share, a premium over the proposed valuation for the business combination. Additionally, ATW Partners received warrants to purchase Fold shares at $12.50 per share in the future. If the extra $10 million is secured, ATW will receive further warrants with an exercise price of $11.50 per share.
This financing provides Fold with immediate capital while aligning investor interests with the company’s long-term growth strategy. The funds will support key initiatives, including scaling Bitcoin rewards programs, developing new financial products, and expanding the user base.
A Significant Milestone
Will Reeves, CEO of Fold, considers this financing a major step in delivering premium Bitcoin financial services while fostering trust and compliance in the crypto space.
“This financing represents a significant milestone for Fold, combining traditional convertible debt structures with digital asset backing in a way that provides both immediate capital and long-term alignment with our shareholders. We are grateful for ATW Partners’ support and confidence in our mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams,” he said.
Fold is set to merge with FTAC Emerald Acquisition Corp., a special purpose acquisition company (SPAC), by the first quarter of 2025. This business combination is expected to lead to Fold's public listing, pending regulatory approvals from the US Securities and Exchange Commission (SEC) and shareholder consent.
The merger will provide Fold access to broader capital markets and strengthen its position in Bitcoin financial services.