Crypto Exchange Bullish Terminates SPAC Merger Deal

The cryptocurrency exchange Bullish confirmed on Thursday the termination of its agreement with the special purpose acquisition company (SPAC), Far Peak Acquisition Corporation (NYSE: FPAC), thus ending its ambitions to become a public firm.

Bullish Terminates SPAC Deal, No New Merger Partner Expected

The two companies mutually agreed on the deal's termination, which was originally announced on 8 July 2021. It would have made Bullish a publicly traded cryptocurrency exchange on the New York Stock Exchange if it materialized.

"Our quest to become a public company is taking longer than expected, but we respect the SEC's ongoing work to lay new digital asset frameworks and clarify industry-specific disclosure and accounting complexities," said the Chairman and CEO of Bullish, Brendan Blumer.

Prominent angel investors like Peter Thiel and hedge fund giants Alan Howard and Louis Bacon back Bullish. Based and licensed in Gibraltar, the cryptocurrency exchange launched its services in December last year. It offers services to eligible users and institutions in some Asian-Pacific, Europe, African, and Latin American jurisdictions. According to its last investor update, the exchange handled $857 million in average daily volume in June this year.

"We are disappointed that we were unable to present the Bullish transaction to our Far Peak shareholders," said Thomas Farley, the Chairman and CEO of Far Peak. Now, the SPAC will not seek a new merger partner and has decided to wind up by 7 March 2023.

Farley added: "Bullish's accomplishments since its launch have lived up to our expectations, and their daily trading volumes highlight their remarkable growth. I am a big believer in Bullish's talented team, their vertically integrated approach to exchange liquidity, and their unwavering commitment to regulation, and the highest standards of industry transparency."

Check out the FMLS21 session on "Opportunities and Pitfalls in M&As."

No More SPAC Deals?

Several other cryptocurrency and trading companies recently terminated their public-listing ambitions through the SPAC merger. Earlier this year, the stablecoin issuer, Circle ended the deal with its SPAC partner this month following Israel-based eToro backing out of such deals that would have put the stocks of the multi-asset broker on an American exchange.

But, the demand for SPAC mergers was not only going down in the United States. Copenhagen-headquartered Saxo Bank recently announced the termination of its SPAC deal, citing timing, that would have taken it public on an Amsterdam-based stock exchange.