Overview:
The bullish cryptocurrency exchange Bullish, supported by Peter Thiel, saw its stock price surge 150% upon debut on the New York Stock Exchange.
The exchange successfully completed its initial public offering (IPO), raising $1.11 billion, with a company valuation reaching $9.94 billion.
Bullish's target customers are institutional investors, and it plans to accumulate stablecoins post-IPO to drive growth.
Cryptocurrency exchange Bullish, backed by Palantir co-founder Peter Thiel, made its debut on the New York Stock Exchange on Wednesday, with its stock price rising more than 150%. The company raised $1.11 billion before the IPO by issuing 30 million shares at a price of $37 each, above the expected offering price. Bullish's stock peaked at $109.9 during trading and ultimately closed at $75.3, with a valuation of approximately $9.94 billion.
Bullish stock price skyrocketed over 150%
This successful IPO is a rare case of a cryptocurrency exchange going public in the U.S. and continues the trend of success for companies in the digital asset space recently.
IPO Boutique senior research analyst Jeff Zell stated, 'Bullish offered an attractive initial valuation, and investors actively participated in the bidding before the IPO.'
Who is Bullish and its significance
Bullish was co-founded in 2020 by well-known institutions including the founder fund established by Peter Thiel, Nomura Securities, and Galaxy Digital. After canceling its SPAC merger in 2022, the company is attempting to go public for the second time.
Former New York Stock Exchange President Tom Farley will serve as the chairman of Bullish, leading the company with his profound expertise in market structure. His reputation among institutional clients will become a key advantage in the fierce competition among cryptocurrency exchanges. Bullish primarily serves institutional clients, and its cryptocurrency holdings are expected to grow with the introduction of new regulations.
Bullish secretly submitted its IPO application to JPMorgan and Jefferies in June and successfully received approval. This listing comes at a time when investor confidence in digital assets is high. Circle Internet Group also achieved similar success, with its stock soaring over 500% post-listing. Companies like Gemini, Grayscale, Figure Technology, and BitGo are also actively preparing for listings.
The demand for equity investments related to cryptocurrencies may be unprecedentedly strong. Some token projects have created financial companies for digital assets, aiming to transform public companies into platforms for increasing cryptocurrency holdings. Strategy (formerly MicroStrategy) was the first to initiate this model through Bitcoin, and companies like Japan's Metaplanet have adopted similar strategies. Recently, companies such as BitMine and SharpLink have also begun focusing on increasing Ethereum holdings and frequently utilize its staking features.
The IPO boom and market optimism
This wave of IPO enthusiasm coincides with a strong bullish sentiment in the U.S. capital markets towards cryptocurrencies. Bitcoin hit an all-time high of $123,500 that day, further corroborating this trend. Support from the White House for cryptocurrencies, corporate adoption of funds, and the influx of new ETFs have all driven market optimism.
Bullish is nearing the completion of a two-year application process to obtain New York State's 'Bitcoin license' (BitLicense) for state-level operations. The company also plans to convert IPO proceeds into stablecoins, which have seen rapid growth since the passage of the (Genius Act).
