Cayman Islands registered Thiel-backed crypto firm Bullish to go public via $9bn SPAC



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Cayman Islands registered Thiel-backed crypto firm Bullish to go public via $9bn SPAC

On Friday, the Bullish Group, a new blockchain-based cryptocurrency company backed by a number of billionaires including Peter Thiel, Richard Li alongside Christian Angermayer among others and registered in Caymans Island, a British overseas territory, had unfolded that the crypto company had agreed to go public through a merger deal with a blank check firm or SPAC (Special Purpose Acquisition Company) Far Peak Acquisition, which in effect would value the merged entity at roughly $9 billion.

SPAC or blank-check firms are shell entities that could be capitalized on to taking a company public following a merger or acquisition, while SPACs or black check firms are allowed to raise funds through IPOs or private investors to finance their planned mergers or acquisitions without telling the investors about the compnay they have been pursuing.

Aside from that, Bullish, a subsidiary of blockchain software company Block.one, also had added in the statement that it had mapped out a plan to roll out a regulated crypto exchange by end-2021. Besides, the Block.one-owned crypto firm Bullish, has been backed by a swathe of high-profile investors such as Peter Theil’s Theil Capital and Founder, British hedge fund manager Alan Howard, a US hedge fund manager Louis Bacon, Hong Kong billionaire Richard Li, Galaxy Digital alongside Japanese lender Nomura among others.

On top of that, Bullish group was quoted saying in the statement that the merged entity would have a valuation of a lump-sum of $9 billion, however, the sum would be subject to further adjustments according to crypto prices during conclusion of the deal, Bullish Group added.

Crypto firm Bullish to go public through $9 billion SPAC

In tandem, according to the financial terms of the SPAC merger between Bullish and Far Peak, the merger would deliver $600 million in fresh capital to Bullish, however, a dampened crypto market prospect amid a crackdown in China, Britain and Japan would likely to weigh on the merger which is expected to conclude by end-2021.

Meanwhile, Block.one Chief Executive and the incoming Chair of Bullish, Brendan Blumer said in an emailed statement, “Bullish's entry into the public markets allows our customers to take part in Bullish by holding a piece of our company, without any of the regulatory uncertainties or jurisdictional limitations of a profit-sharing token issuance”.