Crypto exchange Bullish and Far Peak scrap $9B SPAC deal

Cryptocurrency trading platform Bullish Ltd. and special purpose acquisition firm Far Peak Acquisition Corp. announced on thursday that the companies agreed to cancel a planned merger deal that would have valued Bullish at $9 billion.

The original merger agreement was signed in July 2021 and Bullish would have been publicly listed on the New York Stock Exchange.

As a cryptocurrency exchange and trading platform, Bullish describes itself as “a technology company focused on developing financial services for the digital asset industry that make earning, investing, and transacting more accessible and rewarding.”

According to the press release, the merger has been called off due to an amendment to the original agreement that allows the two companies to halt the deal if it cannot be completed by the end of 2022.

The reason given is that Bullish was unable to trade his Securities and Exchange Commission F-4 registration. These forms are required for registration of securities issued by parties outside the United States and are filed during mergers, consolidations, and the like. As a company, Bullish is based in the Cayman Islands and Peak Acquisitions in the US.

“Our quest to become a public company is taking longer than expected, but we respect the SEC’s continued work to establish new digital asset frameworks and clarify industry-specific accounting and disclosure complexities,” said Brendan Blumer, President and CEO of Bullish.

Most likely it took longer than usual due to increased regulatory scrutiny of the crypto industry due to recent events.

The dissolution of this SPAC agreement comes at a tumultuous time for the cryptocurrency industry following the catastrophic collapse and bankruptcy of the FTX crypto exchange and the subsequent arrest of its CEO and charges against several executives. Earlier this year, the implosion of the “algorithmic” TerraUSD stablecoin led to the crash of cryptocurrency markets, such as bitcoin and Ethereum, falling more than 70% of Record highs in November.

Thomas Farley, president and CEO of Far Peak, expressed disappointment at the completion of the deal, but praised Bullish. However, given time constraints and market conditions, the company does not intend to pursue a new merger.

“We are disappointed that we were unable to present the Bullish transaction to our Far Peak shareholders,” Farley said. “Bullish’s achievements since launch have lived up to our expectations, and its daily trading volumes highlight its remarkable growth.”

The end of the merger also follows a recent trend of similar deals in the crypto industry being pulled with high volatility in the markets and increasing regulatory attention. Israeli crypto platform eToro mutual agreement to cancel its SPAC agreement with acquisition firm FinTech Acquisition Corp V in July and USDC stablecoin issuer Circle Internet Financial Inc. and Concord Acquisition Corp. rescinded its merger proposal earlier this month.

Image: Pixabay

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