Bullish, a tech firm focused on creating financial services for the digital assets sector, recently revealed its plans to go public on the New York Stock Exchange (NYSE) via a merger with Far Peak Acquisition Corporation (NYSE: FPAC), a special purpose acquisition company or SPAC.
As mentioned in a release, Bullish is getting ready to provide what it claims is a revolutionary, regulated cryptocurrency exchange that can offer “deep, predictable liquidity with technology that “enables retail and institutional investors to generate yield from their digital assets.”
The business combination of Bullish and Far Peak has “a pro forma equity value at signing of approximately $9.0 billion at $10 per share, to be adjusted at transaction closing based on crypto asset prices around that time,” the announcement confirmed.
The proceeds include “net cash in trust of approximately $600 million (assuming no redemptions) and $300 million of committed private investment in public equity (PIPE) anchored by EFM Asset Management, with participation from funds and accounts managed by BlackRock, Cryptology Asset Group, Galaxy Digital and several other renowned institutional investors.”
The release also mentioned that the transaction is expected to be finalized by the end of this year and is currently subject to approval by Far Peak stockholders and other customary closing requirements such as regulatory approvals. The Boards of Directors of Bullish and Far Peak have “unanimously approved the proposed transaction.”
As stated in the announcement:
“Far Peak is a SPAC team focused on bringing leading financial and fintech companies public. Far Peak CEO and Chairman Thomas W. Farley previously served as the President of the New York Stock Exchange, bringing 15 years of world-class exchange leadership. Upon completion of the transaction, Far Peak CEO Thomas W. Farley will become the CEO of Bullish and Block.one CEO Brendan Blumer will be appointed Chairman of Bullish.”
Focused on providing innovative financial services, Bullish plans to transform the traditional exchange in order “to benefit asset holders, enable traders, and increase market integrity.” As mainstream institutions increasingly adopt virtual currencies, Bullish aims “to make this asset class more accessible and rewarding to investors while developing the next-generation infrastructure required to better suit their needs.”
“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.”
In the coming weeks, Bullish exchange will be carrying out a private pilot program which should lead up to its public debut expected later this year, the announcement revealed.
As part of the pilot phase, participants may test out and experience the platform first-hand “within a simulated market environment, testing out Bullish exchange’s proprietary innovations, including the Bullish Hybrid Order Book and Liquidity Pools which are designed to provide deep and deterministic liquidity, along with a user-friendly trading experience underpinned by industry-grade security and auditability,” the release noted.
Thomas W. Farley, Chairman and CEO of Far Peak, remarked:
“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 capitalizes on market trends and places technological innovation at the core of its identity.”
“We’re only in the first or second inning of the cryptocurrency market and I’m thrilled to be joining the Bullish team as we revolutionize the future of digital assets through cutting edge financial technologies.”
In the past year, Bullish acquired $100 million from Block.omne and digital assets “comprising of 164,000 BTC and 20 million EOS, and completed a previously announced $300 million strategic investment round.”
Bullish is backed by Peter Thiel’s Thiel Capital and Founders Fund, Alan Howard, Louis Bacon, Richard Li, Christian Angermayer’s Apeiron Investment Group, Galaxy Digital, and global investment bank Nomura.
Jefferies LLC is serving as exclusive financial advisor and capital markets advisor to Bullish. Kirkland & Ellis is acting as U.S. legal advisor to Bullish.
Jefferies LLC, J.P. Morgan Securities LLC, Nomura Securities International, Inc., Berenberg Capital Markets LLC and Galaxy Digital Partners LLC are “acting as co-placement agents to Far Peak on the PIPE.”
Morgan, Lewis & Bockius LLP is “acting as legal advisor to Far Peak, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Far Peak’s independent directors.” Latham & Watkins LLP is “acting as legal advisor to the placement agents on the PIPE.”