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Bullish recently announced it is no longer moving forward with its SPAC agenda due to the deal’s deadline arrival.
The Peter Thiel-backed crypto exchange, Bullish, has terminated the SPAC deal meant to take the company public. In a statement issued yesterday, Bullish explained that it reached a mutual agreement with Far Peak Acquisition to call off the SPAC deal. According to the crypto exchange, the process of becoming a public company was taking longer than expected. As a result, time ran out on the deal.
Commenting on the SPAC termination, Bullish Chairman and Chief Executive Officer Brendan Blumer explained:
“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.”
Blumer also said that Bullish would take the positives from the failed SPAC deal. The way he sees it, the exchange could build on said positives for future optimum service delivery.
Chairman and CEO of Far Peak, Thomas Farley, also expressed disappointment at the failed SPAC development. However, Farley projected unwavering faith in Bullish’s prospects, noting:
“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.”
Bullish & Far Peak Set Initial Deadline for SPAC Deal
Bullish had planned to go public via a SPAC merger with Far Peak Acquisition, an agreement that took place in July 2021. However, both parties have agreed to terminate the deal upon failure to complete it by the end of 2022.
At the time, the deal for a New York Stock Exchange listing secured the backing of several Bullish investors. Most notable among these were billionaire entrepreneur and venture capitalist Peter Thiel and hedge fund heavyweights Alan Howard and Louis Bacon.
Given the SPAC’s failure to launch and prevailing market conditions, Bullish stated that Far Peak would not seek a new merger partner. Instead, the special purpose acquisition company looked to wind down not later than March 7th of next year. Had the public listing gone through, Farley was expected to become Bullish’s new chief executive officer. The Far Peak CEO is also the former president of the New York Stock Exchange.
The Securities and Exchange Commission (SEC) reportedly remained skeptical of the Bullish-Far Peak SPAC initiative.
Rise & Fall of SPAC Deals
SPAC deals exploded in popularity in 2020 and 2021 as a veritable means of taking private companies public. Its streamlined essence particularly appealed to crypto-focused companies and tech platforms. However, due to the sustained general underperformance of both sectors, SPACs have tapered out within the last year.
For example, FinTech Acquisition Corp. V announced in July the mutual termination of its SPAC merger with Israel-based crypto platform eToro. In addition, stablecoin issuer Circle announced the discontinuation of its SPAC deal with Concord Acquisition earlier this month.