• Cryptocurrency exchange Bullish and Far Peak Acquisition mutually agreed to terminate their proposed business combination.
• The Peter Thiel-backed crypto exchange Bullish had earlier planned to go public through a merger with the SPAC Far Peak Acquisition.
• 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 had the right to terminate the deal if it could not be completed by the end of 2022.
Cryptocurrency exchange Bullish and the special purpose acquisition company (SPAC) Far Peak Acquisition (FPAC) have mutually agreed to terminate their proposed business combination. This comes as a surprise, as the Peter Thiel-backed crypto exchange had previously planned to go public through a merger with the SPAC.
The two companies first announced their plans for a merger 18 months ago in July 2021. With this merger, Bullish would have been listed on the New York Stock Exchange (NSE). However, due to new Securities and Exchange Commission (SEC) practices, the exchange has decided to put its plans for an initial public offering (IPO) on hold.
The decision to terminate the deal was provided for in the latest amendment to the two companies‘ original merger agreement. This amendment 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.
In a Thursday, December 22 press release, Bullish Chairman and CEO Brendan Blumer confirmed the company’s decision to abandon its earlier plans to go public. Blumer stated that “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 two companies have not yet revealed the reasons behind their decision to terminate the merger. However, many industry experts believe that the SEC’s stringent regulations and the complexity of the crypto market could be the reason for the failed merger.
The bull market in the crypto industry has been driving significant growth in the sector, which, in turn, has attracted increasing attention from institutional investors and regulators. While the SEC has provided some clarity on the regulatory framework for crypto exchanges, there is still a lot of uncertainty regarding the legal and accounting implications of such a merger. The complexity of the sector and the lack of clarity on the regulatory framework may have forced the two companies to abandon their plans.
While the merger between Bullish and FPAC may have failed, the company is still making progress in its mission to become a regulated crypto exchange. In the press release, Blumer stated that the company is “committed to building a bridge between the traditional and digital asset worlds, and we will continue to work with the SEC and other regulators to bring institutional-grade products to the market.”
The news of the failed merger has come as a disappointment to many industry experts who had expected the listing of the crypto exchange on the NSE. Despite the setback, the crypto industry is still growing and is expected to continue to do so in the coming years. The failed merger is likely to have little to no impact on the long-term growth of the sector.