Crypto company Bullish has ended its plan to go public.
The operator of the regulated cryptocurrency trading platform Bullish exchange and the special purpose acquisition company (SPAC) Far Peak Acquisition said in a Thursday (Dec. 22) press release that they have mutually agreed to terminate their proposed business combination.
“Our quest to become a public company is taking longer than expected, but we respect the SEC’s [Securities and Exchange Commission’s] ongoing work to lay new digital asset frameworks and clarify industry-specific disclosure and accounting complexities,” Bullish Chairman and CEO Brendan Blumer said in the release.
After 18 months of work since announcing their business combination agreement in July 2021, the firms determined that they would be unable to have Bullish’s registration statement on Form F-4 declared effective in time for Far Peak to have its shareholders vote on the proposed business combination before Dec. 31, the date on which they had agreed that both companies could terminate the agreement if it hadn’t been consummated, according to the press release.
“We are disappointed that we were unable to present the Bullish transaction to our Far Peak shareholders,” Far Peak Chairman and CEO Thomas Farley said in the release. “Bullish’s accomplishments since its launch have lived up to our expectations, and their daily trading volumes highlight their remarkable growth.”
Bullish exchange is available in 50 jurisdictions, works within regulatory compliance frameworks and gives institutional and retail traders access to deep liquidity and low-cost transactions, according to the press release.
“I’m proud of the dedicated team of Bullish employees and advisers who have devoted countless hours to ensure Bullish operates with the highest standards of transparency and responsibility,” Blumer said. “This work has formed the operating foundation required to service our customers in the best and safest possible way.”
PYMNTS research has found that pace of SPAC deals involving FinTech companies has slowed to the low single digits in most verticals.
As PYMNTS reported Monday (Dec. 19), SPACs, facing increased regulatory scrutiny, are pressured to rein in optimistic forecasts that used to lure investors. Not only that, but increased scrutiny leads to higher operating costs, which leads to lower margins, and thus, lower returns for the investors.