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Fold Secures $30 Million Convertible Note Financing Backed by Bitcoin

Fold, Inc., a pioneering bitcoin financial services company, has secured a significant financing deal that underscores strong investor confidence in its business model and growth strategy. The company announced that it has closed a $20 million convertible note financing from ATW Partners, with the potential for an additional $10 million upon the closing of its proposed business combination with FTAC Emerald Acquisition Corp. (OTC: FLDD).

This innovative financing structure combines traditional convertible debt with digital asset backing, providing Fold with immediate capital and long-term alignment with its shareholders. The initial convertible note is secured by the company’s assets, including a portion of its proprietary bitcoin holdings, and will mature three years after Fold becomes a public company. The note is convertible into common stock of the combined company at a fixed conversion price of $11.50 per share, representing a premium to the proposed business combination valuation.

In connection with the convertible note, ATW Partners received warrants exercisable for common stock of the combined company with an exercise price of $12.50 per share. This financing represents a significant milestone for Fold, as it provides the necessary capital to accelerate the company’s strategic initiatives and support its growth plans.

The $20 million initial funding will be used to support growth initiatives and accelerate product development, with the remaining potential $10 million financing providing additional capital flexibility upon the closing of the business combination with FTAC Emerald. The proposed business combination remains subject to customary closing conditions, including Securities and Exchange Commission (SEC) regulatory approvals and the approval of FTAC Emerald’s stockholders.

Will Reeves, Chief Executive Officer of Fold, expressed gratitude for ATW Partners’ support and confidence in Fold’s mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams. “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,” Reeves stated.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is serving as the exclusive financial advisor, capital markets advisor, and placement agent to Fold. The closing of the $10 million second tranche of convertible notes is subject to the mutual discretion of Fold and ATW Partners.

The business combination with FTAC Emerald is expected to close in the first quarter of 2025, pending SEC approvals and stockholder approval. This financing deal demonstrates the strong investor confidence in Fold’s business model and growth strategy, positioning the company for continued success in the bitcoin financial services sector.

Fold’s innovative approach to combining traditional financing structures with digital asset backing reflects the evolving landscape of financial services and the increasing importance of digital assets in the financial ecosystem. The company’s commitment to expanding access to premium bitcoin financial services aligns with the growing demand for digital financial solutions and underscores Fold’s position as a leader in the bitcoin financial services industry.

The successful closing of this financing deal marks a significant step forward for Fold, providing the necessary capital to drive growth and product development. As the company moves toward completing its business combination and entering the public markets, this financing deal serves as a testament to Fold’s strong business model and the confidence of its investors in its future success.

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