Bullish Crypto Exchange’s Path to a $4.23 Billion IPO Valuation
In an era marked by evolving regulatory landscapes, Bullish, a cryptocurrency exchange backed by billionaire venture capitalist Peter Thiel, is making significant strides towards launching its initial public offering (IPO). With a target valuation of up to $4.23 billion, Bullish positions itself to capitalize on a new wave of pro-crypto policies under the current US administration. These developments are further bolstered by recent legislative initiatives, like the GENIUS Act, which aim to establish the United States as a global leader in cryptocurrency.
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Bullish’s latest filing reveals plans to raise approximately $629.3 million by offering 20.3 million shares, priced between $28 and $31 each. This marks the company’s second attempt at going public in four years, following a prior effort in 2021 that was hindered by regulatory obstacles. According to a recent report from Reuters, the proposed valuation represents a more than 52% discount from its initial $9 billion target.
Matt Kennedy, a senior strategist at Renaissance Capital, explains that conservative initial valuations are often favored during IPO marketing to allow for potential upward adjustments if the market responds positively. In its filing, Bullish outlines a strategic plan to convert a substantial portion of the IPO proceeds into US-dollar-denominated stablecoins. This conversion will be facilitated through partnerships with one or more issuers of dollar-pegged cryptocurrencies, aligning with the growing momentum in digital assets.
This approach mirrors the successful debut of Circle Internet on the New York Stock Exchange (NYSE), where its value soared to over 400% of its initial IPO price, trading at $164.
Financial Challenges and Institutional Focus
As a trading platform primarily serving institutional investors, Bullish is led by Thomas Farley, the former president of the New York Stock Exchange. Additionally, Bullish owns CoinDesk, a prominent crypto news website acquired from Barry Silbert’s Digital Currency Group in 2023.
Despite its ambitious growth plans, Bullish reported a $349 million loss for the quarter ending March 31, a stark contrast to the $105 million profit from the previous year. The company intends to list on the NYSE under the ticker symbol “BLSH,” with JPMorgan, Jefferies, and Citigroup leading the underwriting efforts for the IPO.
This announcement comes amidst a flurry of activity in the cryptocurrency sector, including Galaxy Digital’s transition to Nasdaq trading and Gemini’s confidential US IPO filing.
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