• Crypto exchange Bullish and the special purpose acquisition company (SPAC) Far Peak Acquisition have mutually agreed to terminate their proposed business combination.
• Bullish Chairman and CEO Brendan Blumer has confirmed the company’s decision to abandon its earlier plans to go public.
• The mutual decision to terminate their merger was due to the new Securities and Exchange Commission (SEC) practices.
The operator of the regulated crypto exchange Bullish and the special purpose acquisition company (SPAC) Far Peak Acquisition have announced that they have mutually agreed to terminate their proposed business combination. This decision comes after 18 months of work since the two companies first announced their plans.
Bullish Chairman and CEO Brendan Blumer has confirmed the company’s decision to abandon its earlier plans to go public. In a Thursday, December 22 press release, Blumer said, “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.”
The mutual decision to terminate their merger was due to the new Securities and Exchange Commission (SEC) practices. Had the merger happened, it would have seen the exchange listed on the New York Stock Exchange (NSE). The move was provided for in the latest amendment to the two companies‘ original July 2021 merger agreement, which stated that either of the two parties has the right to terminate the deal if it could not be completed by the end of 2022.
The SEC has been working to create new digital asset frameworks and clarify industry-specific disclosure and accounting complexities. These changes have led to an increase in the time and resources needed to complete the process. The SEC has also been vocal about its concerns regarding digital asset custody and the need for exchanges to meet certain requirements in order to go public.
The decision to abandon the initial public offering (IPO) of Bullish is a disappointment to many in the industry. The exchange, backed by Peter Thiel, had seen a lot of success in the past year and had planned to use the proceeds from the IPO to expand its operations and make strategic investments.
Although the IPO is no longer in the cards, Bullish and its shareholders remain confident in the company’s future. The exchange is actively working on expanding its offerings and services, and Blumer said, “We remain committed to building the world’s most trusted, compliant, and secure digital asset platform.”
