Bullish’s Impressive IPO Performance
Bullish has set its initial public offering (IPO) price above the revised guidance range, resulting in a successful raise of $1.1 billion. The initial trading price soared to 143% above the offering price, with intraday gains peaking at over 200%. Notably, major institutional players like Blackrock expressed their intent to invest $200 million in this venture. Following the footsteps of Circle, another cryptocurrency firm, Bullish has made a notable entrance into the U.S. stock market this year.
Strong Market Debut for Bullish
On August 13, following Eastern Time, Bullish—parent company of the renowned crypto media outlet CoinDesk and digital asset trading platform—made its debut on the New York Stock Exchange under the ticker BLSH. On its first trading day, shares surged nearly 84%, closing at $68 and pushing the company’s market capitalization close to $10 billion. This event marks another high-profile IPO in the cryptocurrency sector for 2023, alongside Circle, which focuses on stablecoins.
Institutional Confidence and Market Dynamics
At first glance, Bullish’s entry into the market appears to be a routine development in the cryptocurrency industry. Over the past six months, the impressive IPOs of $Circle (CRCL.US)$ and $FIGMA INC (FIG.US)$, alongside $Coinbase (COIN.US)$’s inclusion in the S&P 500, have certainly piqued the interest of investors in crypto-related companies. Bullish kicked off trading at $90, reflecting a 143% increase from its IPO price of $37, and its stock price later jumped to $118, resulting in a market cap that exceeded $16 billion before settling down. The shares faced multiple temporary trading halts due to extreme fluctuations.
Institutional Support and IPO Details
Bullish’s IPO price of $37 facilitated a fundraising effort totaling $1.1 billion, giving the company a valuation of approximately $5.41 billion. The strong demand for shares is indicative of institutional investors’ robust confidence in the ongoing institutionalization of the cryptocurrency industry, with firms like Blackrock and Cathie Wood’s ARK Invest showing interest in acquiring up to $200 million in shares. Bullish’s debut appears to be a continuation of this trend, with the exchange boasting $3 billion in assets and receiving backing from prominent investors such as Peter Thiel, Alan Howard, and SoftBank. The acquisition of CoinDesk further solidifies Bullish’s influence in the sector, with CEO Tom Farley being a former NYSE chairman.
Concerns Over Bullish’s Past and EOS Legacy
However, beneath Bullish’s impressive surface lies a controversial history that resonates within the cryptocurrency community. Questions about the allocation of substantial funds and a divided community have arisen, particularly regarding a previous blockchain venture—EOS. Li Xiaolai, a prominent figure associated with EOS, had previously suggested that the community should wait seven years to see its potential. Ironically, the community’s observations seven years later revealed Bullish’s successful IPO rather than the anticipated growth of EOS.
The $4.2 Billion Controversy
The relationship between Bullish and EOS can be summed up as one between former partners who share an unspoken understanding but are unlikely to collaborate again. Following reports of Bullish’s confidential IPO plans, the price of the EOS token briefly surged by 17%, seemingly reigniting old sentiments. However, for the EOS community, this increase felt more like a bitter reminder of past disappointments. The earlier operator, Block.one, had shifted its focus to Bullish, sidelining EOS and contributing to its decline.
A History of Promises and Disappointment
The narrative began in 2017, during a peak period for blockchain enthusiasm, with Block.one’s introduction of EOS claiming to deliver “one million transactions per second and zero fees.” The ICO in 2018 raised a staggering $4.2 billion, setting a record and earning EOS the title of “Ethereum killer.” However, after launching its mainnet, users quickly uncovered a disconnect between the promised features and reality—transaction processes became cumbersome, and the intended decentralized governance fell prey to manipulation by large stakeholders.
Mismanagement of Funds and Community Disillusionment
Despite promises to invest a significant portion of the raised funds into the EOS ecosystem, much of the capital was instead funneled into U.S. Treasury bonds for low-risk returns and other investments, leaving the developer community with minimal support. This trend culminated in the establishment of Bullish in 2021, which did not utilize EOS technology, nor did it recognize its connection to EOS. For the EOS community, this pivot felt like a betrayal of the original project’s vision and promises.
Attempts to Reclaim Governance and Resources
Following the unveiling of Bullish, the EOS community attempted to reclaim governance rights and the funds raised. Although they succeeded in removing Block.one from EOS management, the control over the funds remained with Block.one. For long-term EOS supporters, Bullish represents more than just a new venture; it symbolizes a lavish celebration built upon their earlier ideals, making it a source of embarrassment.
Funding and Future Prospects for Bullish
Bullish, emerging from the remnants of EOS, initially secured a $100 million investment from Block.one, alongside notable investors like Peter Thiel and Alan Howard, leading to a total capital of up to $1 billion. This figure surpasses the funding received by competitor Kraken, which raised $65 million. Since then, Bullish has focused on its exchange operations, employing an innovative hybrid liquidity model that allows it to provide competitive trading spreads while maintaining market depth.
Acquisitions and Expansion in the Cryptocurrency Space
In its growth trajectory, Bullish acquired CoinDesk in 2023, enhancing its position within the industry. CoinDesk’s audience reached nearly 5 million unique visitors in early 2024. Additionally, Bullish launched CoinDesk Indices and acquired CCData, strengthening its data service offerings for institutional clients. Despite this growth, Bullish’s revenue remains modest, primarily driven by spot trading income from its exchange.
Revenue and Profitability Challenges
In the first quarter of 2025, Bullish reported a net loss of $349 million, largely due to declining Bitcoin and Ethereum valuations. In contrast, CoinDesk’s subscription revenue grew substantially, driven by sponsorships from events like the Consensus Hong Kong conference. Compared to competitors like Coinbase and Kraken, Bullish’s financial performance appears less favorable, with Coinbase’s revenue consistently surpassing Bullish’s by a significant margin.
Market Strategy and Competitive Landscape
Despite impressive trading volumes—$799 billion in Q1 2025—Bullish’s revenue struggles stem from its aggressive strategy of reducing trading spreads. This approach has improved market share but poses challenges as institutional interest grows and trading becomes more concentrated on leading assets, potentially squeezing profits. Furthermore, the introduction of ETFs may increase competition, further impacting Bullish’s profitability.
Future Growth Plans for Bullish
In the face of stiff competition, Bullish’s strategy mirrors that of major exchanges like Coinbase, focusing on expanding into derivatives markets and pursuing acquisitions to foster growth. The company aims to enhance its product offerings, particularly in options, to cater to high-value institutional clients.
Assessing Bullish’s Valuation and Market Position
Bullish’s capacity for future acquisitions can be linked to Block.one’s historic $4.2 billion fundraising through the EOS ICO. While a significant portion of the funds was allocated to safe investments, Block.one also amassed a considerable Bitcoin reserve. As of early 2025, Bullish’s assets include around $3 billion, comprising 24,000 Bitcoins and a substantial amount in cash and stablecoins.
Liquidity Concerns and Market Reactions
Despite its impressive asset base, Bullish’s $4.8 billion IPO valuation appears understated. The company made last-minute adjustments to its offering plan, increasing its share price range and the number of shares offered, responding to strong market enthusiasm. However, only a small fraction of shares will be available for public trading, which could lead to volatility once the lock-up period ends and early investors choose to sell.
The Importance of Strategic Timing
This is not Bullish’s first attempt to enter the public markets; a previous effort in 2021 was thwarted by market volatility and regulatory uncertainties. With Bitcoin once again reaching new heights, and successful IPOs from firms like Circle, Bullish has returned to the NYSE with a more strategic approach. Whether this combination of a revised valuation and limited liquidity will lead to significant gains for Block.one remains uncertain, but for investors familiar with the EOS saga, caution is advised to avoid repeating past mistakes.
