The deal will enable Bullish to become a publicly listed company in the US
Bullish, a blockchain-based cryptocurrency exchange firm, will go public in a $9bn SPAC deal. (Credit: Pete Linforth from Pixabay)
Bullish, a blockchain-based cryptocurrency exchange firm backed by Block.one, has agreed to merge with Far Peak Acquisition (FPAC), a special purpose acquisition company (SPAC), in a deal that values the combined company at nearly $9bn.
The deal will enable the cryptocurrency exchange become a publicly listed company, which will trade on the New York Stock Exchange (NYSE).
Bullish was founded in May 2021 by blockchain software company Block.one with support from investors that include Peter Thiel’s Thiel Capital and Founders Fund, Louis Bacon, Galaxy Digital, Alan Howard, Richard Li, Nomura, and Christian Angermayer.
The cryptocurrency exchange firm was launched with more than $10bn in capitalisation in the form of cash and digital assets.
Block.one CEO Brendan Blumer said: “We believe Bullish’s real-time portfolio balancing tools, deep predictable liquidity, and industry-leading security and compliance represent a new breed of exchange design and can redefine how investors trade and manage digital assets.
“We are excited to be partnering with Far Peak to bring Bullish into the public markets to offer our customers the opportunity to own a part of our business.”
Bullish is said to launch a regulated cryptocurrency exchange that will provide deep, predictable liquidity to help investors generate returns from their digital assets.
The company will shortly carry out a private pilot programme prior to its public launch, which is expected to be later this year.
Participants in the pilot will get to test and have first-hand experience of the cryptocurrency exchange platform within a simulated market environment.
Bullish Hybrid Order Book, Liquidity Pools, and other innovations of the company will be tested by the participants during the pilot. The two products are designed to give deep and deterministic liquidity in addition to a user-friendly trading experience.
The SPAC deal will give Bullish nearly $900m in cash proceeds. Of this, around $600m will be from cash in trust of Far Peak Acquisition, while the remaining $300m will come through a private investment in public equity (PIPE).
The PIPE investment is anchored by EFM Asset Management. The other PIPE investors are funds and accounts managed by BlackRock, Cryptology Asset Group, Galaxy Digital, and other institutional investors.
The enlarged Bullish, post-merger, will be led by Far Peak Acquisition Chairman and CEO Thomas Farley in the role of CEO.
Farley said: “With the increased interest from institutional players and sophisticated traders, it is critical to iterate on the existing exchange infrastructures we see today.
“Bullish is well positioned to strategically deliver value to its prospective shareholders as it capitalises on market trends and places technological innovation at the core of its identity.”
The merger will be subject to the SPAC’s shareholders’ approval, receipt of regulatory approvals, and other customary closing conditions. Following these, it is expected to be finalised by the year-end.