Fold IPO – Bitcoin Rewards Giant to List on Nasdaq

The company finally filed for IPO and now awaits the SEC's answer. However, its decision to go public was announced in July this year and it befits the rapid growth and transformation characterizing the fintech industry at the moment.

Bitcoin financial services company Fold has filed an S-4 with the SEC as it prepares to go public.

The company currently holds over 1,000 Bitcoins in its corporate treasury. Fold operates a cashback debit card and allows users to purchase or sell Bitcoin directly via their accounts. This makes the company a minor rival to Block’s (SQ) Cash App, which also enables Bitcoin purchases and sales in addition to cashback rewards in cryptocurrency.

Fold finally filed for IPO and now awaits the SEC’s answer. However, its decision to go public was announced in July this year and it befits the rapid growth and transformation characterizing the fintech industry at the moment.

As underlined by the chief executive, the IPO will avail much-needed capital for expanding services and improving technological infrastructure. The plans are to use money raised through the listing to boost user experience, develop new products, and expand market reach.

Fold’s Bitcoin strategy is also part of a broader trend for fintech companies to integrate digital currencies into their businesses. It makes the company look forward-thinking and ready for the future of finance. So far, this has yielded significant returns; any increases in Bitcoin’s value bolster the firm’s balance sheet.

The rewards model lies at the heart of the company’s business model, allowing users to earn Bitcoin through purchases. This has driven user growth and engagement as people look for ways of acquiring more Bitcoins without directly investing in the market. The IPO should be among the most important events in fintech and crypto. The firm says its innovative approach and strong market position attract huge investor interest. It will list shares on NASDAQ under the ticker symbol FOLD.

If listed, Fold will join an elite group of well-known public companies with Bitcoin on their balance sheet. Most prominent among them is MicroStrategy, holding a stash of 252,220 Bitcoins as of September, which, if valued at today’s prices, will be worth approximately $15 billion. Recently, the company’s CEO, Michael Saylor, updated his followers about the company’s plans to offer a private offering of $700 million in convertible senior notes.

However, it’s not just MSTR that is grappling with Bitcoins. As of September, Block is holding 8,211 Bitcoins, representing more than $630 million.

Optimism over spot Bitcoin ETFs, this year’s Bitcoin halving, and next year’s US presidential elections will propel Bitcoin prices higher in 2024. Still, crypto investors remain confident that the election results between Donald Trump and Kamala Harris will not impede Bitcoin’s journey toward the $100,000 mark.

This optimism has simultaneously increased stock prices of those companies holding Bitcoin—for instance, Bitcoin is up about 49% year to date. In comparison, shares of MicroStrategy have surged nearly 165% in the same period.

In a recent interview, Will Reeves, founder and CEO, emphasized the importance of timing, stating that the company has effectively nailed the timing of its product. By allowing users to passively stack sats through a product that offers Bitcoin rewards for daily spending instead of traditional cash back, Fold creates a valuable first-touch experience with Bitcoin.

After identifying its core user base and refining the sats-back experience, Fold has expanded its product offerings to include additional Bitcoin services, such as buying and selling Bitcoin within the app and bill payment for sats back. Plans are in place to introduce a credit card and more financial services. The approach involves starting simple, providing value, ensuring optimal timing, and then expanding the service portfolio, which appears to be a successful strategy.

For founders in the crypto space, it’s highly recommended to listen to the episode for valuable insights, especially regarding when to focus on product development and when to prioritize growth. The perspective shared highlights that bear markets are ideal for building, while bull markets are best for attracting a wider audience and capturing as many new users as possible.

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