On Tuesday, Fold disclosed it has secured access to up to $250 million through an equity purchase facility intended primarily to acquire more bitcoin for its corporate reserves.
Fold Announces $250M Equity Deal to Bolster Bitcoin Treasury
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Fold Gains Option to Raise $250M, Primarily for Bitcoin Buys
The publicly traded bitcoin financial services company, Fold Holdings, Inc. (Nasdaq: FLD), announced the agreement Tuesday. Under the terms, Fold holds the right, but not the obligation, to issue and sell up to $250 million of its common stock over time. The company retains control over the timing and amount of any funds drawn, subject to facility restrictions.
The announcement shared with Bitcoin.com News, says net proceeds from any stock sales under this facility are expected to be used mainly to purchase additional bitcoin (BTC) for Fold’s corporate treasury, the company stated. Fold currently ranks among the top ten U.S. public companies for bitcoin holdings, with approximately 1,485 BTC already in its treasury.
Utilizing the facility hinges on regulatory approval. Fold must file a registration statement with the U.S. Securities and Exchange Commission (SEC) covering the resale of the common stock issued under the agreement and have it declared effective. No shares can be sold or offers accepted before that SEC effectiveness.
Fold disclosed that the initial offers and sales of the common stock will occur through a private placement exempt from SEC registration requirements, relying on Section 4(a)(2) of the Securities Act and/or Regulation D, along with applicable state laws. Fold further emphasized this announcement does not constitute an offer to sell securities.
Cohen & Company Capital Markets, part of J.V.B. Financial Group, LLC, acted as the exclusive placement agent for establishing the facility. Fold describes itself as the first publicly traded bitcoin-only financial services company.
