Crypto exchange Bullish is aiming for a valuation of up to $4.23 billion in its planned U.S. IPO, according to a company filing made on Monday. The firm has launched its investor roadshow to tap into the momentum driven by increased regulatory clarity around digital assets.
Companies operating in the crypto and blockchain space are increasingly capitalizing on favorable regulatory developments, especially following the recent approval of the Genius Act, which lays the groundwork for stablecoin regulation.
The company intends to offer 20.3 million shares at a price between $28 and $31 each in this IPO attempt, which is Bullish’s second in four years and could raise up to $629.3 million.
At the upper end of this price range, the offering would value Bullish at over 52% lower than the $9 billion valuation it had targeted in a previously canceled SPAC merger in 2021, but regulatory obstacles forced its cancellation.
“When IPO marketing begins, bankers often increase the price rather than cut the valuation,” said Matt Kennedy, a senior strategist at IPO-focused research and ETF provider Renaissance Capital.
With backing from billionaire Peter Thiel, Bullish also revealed plans in its filing to convert a significant portion of the IPO proceeds into U.S. dollar-pegged stablecoins, in partnership with one or more stablecoin issuers.
Notably, Circle Internet (CRCL.K)—a leading stablecoin issuer—made a successful debut on the NYSE in June and is currently trading at over 400% above its IPO price.
Investor Focus
Bullish, led by CEO Thomas Farley (former President of the New York Stock Exchange), runs a crypto-trading platform that primarily targets institutional investors.
“Bullish also owns CoinDesk — a well-known cryptocurrency news platform — which it acquired in 2023 from Barry Silbert’s Digital Currency Group (DCG).”
However, Bullish posted a $349 million loss in the quarter ending March 31, a sharp decline compared to a $105 million profit in the same quarter last year. The loss is a result of the company’s cryptocurrency holdings’ declining fair market value.
Meanwhile, Coinbase (COIN.O)—the largest public crypto exchange—reported a dip in adjusted second-quarter earnings last Friday due to a slowdown in trading activity, causing its stock to fall nearly 17%, even though it recorded gains in its investment portfolio.
Analysts point out that some investors tend to look beyond quarterly price swings in the crypto market when evaluating such companies.
According to Kennedy, investors will likely focus on “how efficiently Bullish operates and how profitable it is as a pure exchange, regardless of short-term price volatility.”
Bullish is planning to go public on the New York Stock Exchange (NYSE) with the ticker symbol ‘BLSH’, and leading the offering are major financial firms — J.P. Morgan, Jefferies, and Citigroup.”