Crypto exchange Bullish's shares set to more than double in debut
If the Peter Thiel-backed crypto exchange starts to trade at the last indicated range of $85 to $88 on the NYSE, it could potentially value the company at more than $12.86 billion.
The parent of crypto news website CoinDesk raised $1.11 billion in an IPO priced at $37 apiece, valuing it at $5.4 billion, as mainstream crypto adoption accelerates in a sector that recently surpassed $4 trillion in value.
"Bullish came out with an attractive initial valuation, and investors responded by aggressively bidding it up during the pre-IPO process," said Jeff Zell, senior research analyst at IPO Boutique.
A string of regulatory wins under a pro-crypto White House, corporate treasury adoption, and ETF inflows have prompted investors to embrace the once-scorned digital asset class, driving bellwether bitcoin to record highs.
Exchange operator Gemini and asset manager Grayscale are also among the crypto firms that have confidentially filed to go public.
"We've gone public today, and there's a slew of others that are going to follow us, and I think that is net beneficial, because it gives people more options in terms of how they access this asset class," Bullish President Chris Tyrer told Reuters in an interview.
Bullish is close to concluding a two-year process to obtain a virtual currency license known as a "BitLicense" in New York, which would allow the company to operate in the state, Tyrer said.
The BitLicense requires companies to comply with requirements related to know-your-customer, anti-money laundering and capital.
Bullish plans to convert a significant portion of the IPO proceeds to stablecoins — a slice of the crypto space that has boomed since U.S. President Donald Trump signed the Genius Act, creating a regulatory regime for the dollar-pegged cryptocurrencies.
Bullish's debut marks a rare U.S. listing by a crypto exchange, joining larger retail-focused rival Coinbase (COIN.O), opens new tab, which became the first crypto player to be included in the benchmark S&P 500 (.SPX), opens new tab index in May.
Founded in 2020, Bullish targets institutional clients, whose crypto holdings are expected to rise as a new White House order aims to allow alternative investments in 401(k) retirement plans.
"A pure institutional strategy positions Bullish for more stable, recurring revenue than exchanges reliant on retail volumes, which tend to be cyclical and sentiment-driven," said Michael Hall, co-chief investment officer and founding partner at Nickel Digital Asset Management.
Bullish CEO Tom Farley was previously the president of NYSE.
"For a sector still overcoming reputational headwinds, that kind of leadership experience can be a differentiator in securing institutional mandates," Hall said.
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