Bullish Stock Surges 84% on U.S. Market Debut

Bullish, a cryptocurrency exchange, made a notable debut on the U.S. market, with its stock surging 84% to close at $68 on its first trading day. This impressive performance valued the company at approximately $10 billion. Bullish set its initial offering price at $37, which was higher than the adjusted range, raising around $1.1 billion in the process. The stock's volatility was so pronounced that it triggered a temporary halt in trading.

The substantial first-day gain has reignited debates about the optimal pricing strategy for initial public offerings (IPOs). Many investment banks typically view a 20% to 30% increase on the first day as an ideal "balance zone." However, Bullish's performance, similar to Figma's 250% surge last month, has sparked controversy over the practice of underpricing IPOs.

To mitigate the extreme volatility, Bullish allocated about 20% of its new shares to retail investors, a proportion significantly higher than the norm for most IPOs. Despite this effort, the initial enthusiasm remained unabated. The company's CEO noted that the dramatic fluctuations were anticipated, reflecting the market's growing recognition of blockchain technology's potential to underpin global financial infrastructure.

The broader market environment also contributed to the bullish sentiment. The S&P 500 index reached a new closing high on the same day. According to Dealogic, as of August 12, the average increase in the price of new U.S. stocks from their issue price for 2025 was approximately 25%. With the window of opportunity widening, several companies, including StubHub and Klarna, are reportedly preparing for autumn IPOs.

Founded in 2021, Bullish has attracted investments from notable figures such as Founders Fund and hedge fund manager Louis Bacon. By March of this year, the platform had processed over $125 trillion in transactions. The company had previously attempted to go public through a SPAC merger in 2021-2022, valuing the deal at around $9 billion. However, due to industry-wide risks and the eventual collapse of FTX, the plan was abandoned. In 2023, Bullish acquired the cryptocurrency media outlet CoinDesk. With Bitcoin reaching new highs and a more favorable regulatory environment, competitors such as Gemini and Grayscale have also filed for U.S. listings.