Bullish IPO Raises $1.1 Billion, Should You Buy BLSH Stock?

Bullish, a cryptocurrency exchange and owner of CoinDesk, raised $1.1 billion in its IPO and priced its shares at $37, valuing the company at $5.4 billion. The company aims to provide mission-critical products and services to institutions and individual customers, and drive the adoption of stablecoins, digital assets, and blockchain technology. BlackRock and Ark Investment Management have expressed interest in accumulating a stake in BLSH stock.

Bullish, a cryptocurrency exchange and owner of CoinDesk, has raised $1.1 billion in its initial public offering (IPO), pricing its shares at $37 per share and valuing the company at $5.4 billion [1]. The IPO, which was one of the year’s most oversubscribed listings, reflects the growing optimism and stability in the U.S. crypto market. The exchange's success comes amidst a wave of optimism in digital assets, with Bitcoin hovering near an all-time high of $120,000 and the Trump administration's recently signed legislation creating a regulatory framework for stablecoins [1].

Bullish's IPO priced its shares well above the already-raised guidance range of $32 to $33, selling 30 million shares and bringing in roughly $1.1 billion. The company's institutional focus, offering spot trading, margin trading, and crypto derivatives but deliberately limiting its focus to the largest and most liquid assets—Bitcoin and Ethereum—distinguishes it from retail-heavy exchanges like Coinbase [1]. This strategy has been underscored by the interest of institutional investors such as Peter Thiel’s Founders Fund, BlackRock, Galaxy Digital, and ARK Invest, with ARK indicating a potential $200 million worth of shares at the IPO price [1].

Financials show a quick turnaround for Bullish, with management expecting to swing to profitability in Q2 2025, projecting net income between $106 million and $109 million. Trading volumes have grown significantly, from $72.7 billion in 2022 to $250 billion in 2024, suggesting that its institutional focus is paying off [1]. The company also disclosed crypto holdings worth about $2 billion, primarily in Bitcoin, with smaller allocations to Ethereum and stablecoins, which serve as part of its liquidity strategy [1].

Bullish's success echoes the reception for Circle Internet's IPO in June, which was also upsized on strong demand. Circle's shares have since climbed more than 400%, reflecting the market's appetite for stability in crypto policy and price momentum [1]. However, Bullish had a false start in 2021 when it tried to go public via a SPAC merger, which was abandoned in 2022 amid collapsing crypto prices and heightened regulatory hostility. The contrast between then and now illustrates how quickly market sentiment can pivot when macro conditions and regulatory frameworks align [1].

Bullish trades under the ticker BLSH on the NYSE, with JPMorgan, Jefferies, and Citigroup leading the underwriting. Early interest from retail traders has been notable, with Stocktwits data showing a 177% jump in message volume over the past week, suggesting this won't be a purely institutional play [1]. Traders will be watching Q3 volumes and any expansion of its product suite closely to gauge the company's future performance.

References:
[1] https://economictimes.indiatimes.com/news/international/us/bullish-ipo-raises-1-1b-in-oversubscribed-debut-at-5-4b-valuation-as-peter-thiel-backed-exchange-rides-crypto-market-boom/articleshow/123283072.cms