Crypto Exchange Bullish Abandons IPO Plans

Updated: 23 December 2022

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In a Thursday, December 22 press release, the operator of the regulated crypto exchange Bullish and the special purpose acquisition company (SPAC) Far Peak Acquisition said that they have mutually agreed to terminate their proposed business combination.

Cryptocurrency exchange Bullish Chairman and CEO Brendan Blumer also confirmed the company’s decision to abandon its earlier plans to go public.

Our quest to become a public company is taking longer than expected, but we respect the SEC’s ongoing work to lay new digital asset frameworks and clarify industry-specific disclosure and accounting complexities.

Crypto Exchange Bullish And FPAC Give Reasons For Canceling

The company had planned to go public through a merger with a special purpose acquisition company (SPAC) Far Peak Acquisition (FPAC). However, in light of new Securities and Exchange Commission (SEC) practices, the Peter Thiel-backed cryptocurrency exchange Bullish has decided to put its plans for an initial public offering (IPO) on hold.

Had the merger happened, it would have seen the exchange listed on the New York Stock Exchange (NSE).

The move was provided for in the latest amendment to the two companies’ original July 2021 merger agreement, which stated that either of the two parties has the right to terminate the deal if it could not be completed by the end of 2022. After 18 months of work since they first announced their plans to combine their business, Bullish and SPAC figured that they would not be able to have Bullish’s registration statement on Form F-4 declared effective in time for Far Peak to have its shareholders vote on the proposed business combination on time.

The deadline initially provided was December 31, a timeline by which they had agreed that both companies could terminate the agreement if it hadn’t been consummated, according to the press release. Seeing that it is barely a week before the year closes, there may be no time to finalize the deal, hence the unanimous decision to cancel.

Far Peak Chairman and CEO Thomas Farley expressed his disappointment on the failure of the transaction to go through saying:

We are disappointed that we were unable to present the Bullish transaction to our Far Peak shareholders. Bullish’s accomplishments since its launch have lived up to our expectations, and their daily trading volumes highlight their remarkable growth.

Seemingly, Thomas’s statement was meant to put off any doubts that the merger had been called off for any other reason apart from the timeline provided.

About Bullish Exchange

Bullish exchange is available in 50 jurisdictions and works within regulatory compliance frameworks to ensure that both institutional and retail traders have access to deep liquidity and low-cost transactions.

Investors backing crypto exchange Bullish include, but are not limited to Peter Thiel and hedge fund giants Alan Howard and Louis Bacon. According to its latest investor update, the Bullish exchange handled up to $857 million in average daily volume in June of 2022.

In his concluding remarks on the press release, Blumer said:

I am proud of the dedicated team of Bullish employees and advisers who have devoted countless hours to ensure Bullish operates with the highest standards of transparency and responsibility. This work has formed the operating foundation required to service our customers in the best and safest possible way.

SPAC Not So Desirable Anymore

Based on research, in most verticals, the pace of SPAC deals involving FinTech companies has slowed to the low single digits. The research has also revealed that SPAC is facing increased regulatory scrutiny, which has perhaps pressured them to rein in optimistic forecasts for luring investors. Beyond that, the increased scrutiny has also edged them towards higher operating costs, leading to lower margins, and thus, lower returns for the investors.

With the move to call off the merger, this becomes the most recent in a long line of canceled mergers in the formerly desirable SPAC arena. Earlier in December, stablecoin issuer Circle also canceled its merger agreement with Concord Acquisition.