Bullish Stock Surges 200 Percent on IPO But Faces Valuation and Ownership Concerns

Bullish, a cryptocurrency-focused exchange backed by Block.one, made a striking debut on Wall Street on August 13, 2025, with its stock price soaring well above the IPO price of $37. Retail traders and crypto enthusiasts fueled the rally, pushing the stock past $110 within hours of its listing. However, the euphoria surrounding BLSH may not last, as analysts have raised two key concerns that could undermine the stock’s early performance.

The first issue lies in the company’s valuation, which appears to be at odds with its financial fundamentals. In 2024, Bullish generated just $250 million in revenue. At the current stock price of $110 and with approximately 150 million shares outstanding, the company’s price-to-sales (P/S) ratio exceeds 60. This is sharply higher than more established crypto firms like Coinbase, which has a P/S ratio below 13 despite offering a more diversified business model and proven earnings performance. The inflated multiple suggests that investors are betting heavily on future potential without a track record to support such optimism [1].

The second concern stems from the high level of ownership concentration among insiders. According to regulatory filings, Brendan Blumer, former CEO of Block.one, retains a 30.1% stake in Bullish, while board member Kokuei Yuan holds 26.7%, together controlling over 56% of the company post-IPO. This level of concentrated ownership raises red flags for public investors. It can limit board independence, reduce shareholder influence, and obscure transparency in key decision-making areas such as capital allocation and executive compensation. Furthermore, if Blumer or Yuan decide to sell significant portions of their shares, it could increase supply in the market and depress the stock price [1].

Taken together, these factors suggest that Bullish’s meteoric rise is driven more by speculative momentum than by intrinsic value. While the company may have long-term potential in the evolving crypto market, the current valuation reflects an assumption of flawless execution and exponential growth that has yet to be proven. For investors, the lesson is clear: caution should prevail over conviction when considering entry points at these levels [1].

Until Bullish can demonstrate consistent revenue growth, profitability, and a more balanced ownership structure, the early gains from its IPO may prove difficult to sustain.

Source: [1] Two big reasons why Bullish stock’s post-IPO gains may not sustain (https://invezz.com/news/2025/08/13/two-big-reasons-why-bullish-stocks-post-ipo-gains-may-not-sustain/)