Thiel-Backed Crypto Firm To Join Growing Ranks Of Bitcoin Stocks
Bullish, a company backed by billionaire investor Peter Thiel said Friday that it will go public via a SPAC merge. This announcement came a day after Circle announced a similar deal. The move comes as Bitcoin stocks grow.
These moves are due to a rise in interest in digital assets in this and last years, even though the Bitcoin price is down from its highs earlier in the year.
New Bitcoin stocks will be availableCoinbase(COINThe company went public via direct listing in April. Bullish would compete with Coinbase, which is the largest cryptocurrency exchange in America, and other global players.
Bullish has reached a deal with the company, which will launch a more user-friendly cryptocurrency platform later this year.Far Peak Acquisition Corp.(FPACThe ) is expected close by 2021. Bullish will trade at the New York Stock Exchange.
Thomas Farley, who was previously the President of NYSE, is Far Peak’s CEO.
Bullish stated that the merger between Far Peak and Bullish had a pro forma valuation of approximately $9 billion, at $10 per share. It stated that the transaction will adjust this value based on crypto prices around that time.
Bullish stated that the deal will generate net cash in trust amounting to around $600million and $300 million in committed private investments in public equity (PIPE) anchored by EFM Asset Management.
Managed funds and accountsBlackRock(BLK) and Galaxy Digital, a financial services company founded by Mike Novogartz were also part of the PIPE.
Bullish intends to launch a crypto-exchange that is blockchain-based later in the year. The company announced Friday that it will run a private pilot program to allow users to test out the exchange in a simulated market environment. Bullish stated that the pilot will be launched in the next few weeks.
Bitcoin Stocks, Price of Bitcoin
SPACs (special-purpose acquisition corporations) have been a popular way to go public in the last year. These companies exist already and can merge with private companies to make them public. This process is faster and more efficient than traditional IPOs.
Far Peak shares rose 3.6% in FebruaryStock market today. Coinbase, among other Bitcoin stocks, rose by 3%Grayscale Trust(GBTC) increased 1.4%.Marathon Digital Holdings(MARAAdded 2.4%
Circle Internet Financial, the company that oversees the USD Coin stablecoin, announced Thursday it will go public via a deal withConcord Acquisition Corp.(CND. Concord fell 0.7% Friday after an increase of 6.7% the day before.
Combining with Concord, Circle was valued at $4.5 billion. Stablecoins such as USD Coin are cryptocurrencies that have a value tied to a government-backed currency.
Bitcoin’s price rose 2.8% to $33,502. Due to China’s crackdown, the cryptocurrency has fallen from its highs in 2018
“More Accessible”
Bullish Global is a subsidiary of Block.one’s blockchain software company Block.one. Block.one reported that Bullish Global held more than $10 Billion in digital assets and cash as of May.
This figure includes an infusion of Block.one, consisting $100 million, 164,000 bitcoins, and 20 million EOS (a cryptocurrency). The round also included a $300,000,000 investment round. Thiel Capital’s Thiel Capital, Founders Fund and hedge fund managers Alan Howard as well as Louis Bacon were among the investors who led the raise.
According to Bullish’s Friday release, it stated that it plans to create an exchange that offers more benefits for traders.
Bullish stated that digital currencies are becoming more popular in mainstream institutions. The company aims to make the asset class more accessible to investors and to reward them for their investment, while also developing the infrastructure needed to meet their needs.
In May Block.one reported that Bullish would provide portfolio management, market-making, and lending tools. These capabilities, according to Block.one, will ‘deliver functionality previously monopolized in traditional finance.