#1405 Will Reeves | Bitcoin Company With 1,000 Bitcoin Is Going Public?!
Sep 19, 2024
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Will Reeves, Founder & CEO of Fold, takes listeners on a deep dive into his innovative Bitcoin company prepping for a SPAC public offering. He discusses how Fold simplifies earning and using Bitcoin through everyday financial products. The conversation reveals the company's approach to merging Bitcoin with traditional banking, enhancing mortgage options, and reimagining rewards programs. Reeves emphasizes the potential for Bitcoin to reshape financial paradigms while navigating the growth towards a responsible crypto market.
Fold’s dual approach to Bitcoin facilitates both customer accumulation of Bitcoin rewards and the company’s treasury growth, showcasing a harmonious balance between user wealth and business assets.
The evolution of Fold from gamified experiences to serious financial products highlights its commitment to embedding Bitcoin into personal finance, reshaping traditional banking models for a diverse user base.
With its SPAC transaction, Fold aims to become the first Bitcoin-based financial service publicly listed, leveraging raised capital to enhance its treasury and product offerings while transforming financial services.
Deep dives
Fold's Unique Bitcoin Strategy
Fold operates with a dual approach to Bitcoin, both accumulating it for their own treasury while simultaneously offering services to help customers acquire Bitcoin. The platform functions as a banking alternative, enabling users to spend, pay bills, and earn Bitcoin rewards through their transactions. Since its launch, Fold has facilitated the earning of over $45 million in Bitcoin rewards for customers, highlighting its effectiveness as a financial tool in an environment where purchasing power is declining. This method demonstrates that user wealth and company assets can coexist harmoniously, benefiting both parties without being at odds.
Innovative Financial Products
Initially focusing on gamified experiences, Fold has evolved to offer serious financial products integrated with Bitcoin. The introduction of rewards systems allows users to earn Bitcoin through everyday spending, transitioning to features that secure a portion of income or savings directly in Bitcoin. This ongoing evolution aims to embed Bitcoin deeply into personal finance, surpassing traditional banking models while attracting a diverse user base. As users accumulate substantial Bitcoin balances through Fold, they are increasingly seeking products related to credit and loans directly linked to their Bitcoin holdings.
Navigating Market Volatility
Fold's operational strategy recognizes the inherent volatility of Bitcoin, requiring a nuanced approach to business management. Unlike traditional companies that convert revenues to cash, Fold retains Bitcoin as revenue, aiming to benefit from its long-term value increase. The existence of a separate treasury strategy allows Fold to enhance its stability without jeopardizing the core operations of the business. This separation enables better responses to market fluctuations, ensuring the company's resilience amidst the unpredictable nature of Bitcoin.
The Role of Bitcoin in Mortgages
Fold is exploring how Bitcoin can be integrated into mortgage lending processes, creating innovative financial products that leverage Bitcoin as collateral. Traditional methods often rely on cash reserves, but Fold envisions a system where Bitcoin ownership can enhance loan terms through real estate appreciation over time. This approach eliminates complications associated with Bitcoin's short-term volatility, thereby providing peace of mind for borrowers. By blending home values with Bitcoin appreciation, Fold aims to redesign lending practices to accommodate the evolving financial landscape.
Preparing for Public Markets with a Bitcoin Focus
Fold is entering public markets through a SPAC transaction, positioning itself as the first Bitcoin-based financial service company on this stage. The company plans to utilize capital raised from this move to significantly increase its Bitcoin treasury while fostering growth through innovative product offerings. The intention is to solidify Fold’s brand association with Bitcoin, promoting the platform as an accessible tool for everyday users. By bridging the gap between traditional finance and the emerging Bitcoin landscape, Fold aims not only to thrive as a business but also to lead in the transformation of financial services.
Will Reeves is the Founder & CEO of Fold, a gateway to earning, buying, and living on bitcoin. Fold is now going public via SPAC deal, and it’s estimated that they will be in the public markets with over 1,000 bitcoin on their balance sheet. In this conversation, we discuss what the business is, how they executed the Microstrategy bitcoin playbook in the private markets, what their products are, and what he thinks will be built in the future.
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