The much-awaited Bullish IPO is here, giving investors a chance to invest in a Peter Thiel-backed crypto exchange and the parent company of Coindesk. Its order book will close today, August 12, and then the BLSH stock will start trading on Wednesday. So, will the Bullish stock be a good buy?
Bullish IPO Details
Bullish, a top crypto exchange, is the second major crypto company to launch an IPO after Circle this year, with more like Kraken, Gemini, and Grayscale expected to follow suit.
The company is raising about $990 million from investors in a deal that will value it at almost $4.8 billion. This amount is much higher than the $629 million it sought to raise, a sign that it has significant demand from investors during the roadshow.
The Bullish stock price will start trading between $32 and $33 on Wednesday. This is happening after Circle launched a successful IPO in which its stock went parabolic, boosting its market cap from below $10 billion to over $66 billion.
JPMorgan, Jefferies, and Citigroup are arranging the Bullish IPO, and the company will debut on the New York Stock Exchange (NYSE).
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Will the BLSH Stock be a Buy or Sell
Unlike Coinbase and Binance, Bullish is not a well-known crypto exchange. However, according to its S1 document, the company handled spot trades worth over $647 billion and perpetual futures trades worth $111 billion. Its volume growth was up by 78% from the same period last year.
Bullish also owns Coindesk, a company that operates indices, data, and a news platform. Its indices have over $41 billion in assets under management (AUM).
Also, according to S1, the company holds 24,000 Bitcoins in its balance sheet, currently worth over $2.9 billion.
The most recent results showed that Bullish Exchange made over $80.23 million in the first quarter, down from $80.4 million in the same quarter last year. Its last annual revenue was $250 million, up from $116 million in 2023.
The risk, however, is that the company is still losing a lot of money. Its net loss in Q1 was about $348 million.
So, is Bullish stock a buy or sell? Odds are that the BLSH stock price will surge after its IPO, as we saw with other recent debuts like Circle and WeBull. This surge will accelerate because of the ongoing crypto bull run.
However, these gains will likely be short-lived, as other companies’ stocks have been. The decline will happen as investors start to book profits. It will also drop as concerns about the crypto exchange industry remain, especially after the weak Coinbase earnings.
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