Peter Thiel-Backed Bullish pulls the plug on a $9 billion SPAC deal

Crypto Bullish has canceled its planned $9 billion merger with Far Peak Acquisition Corp.

According to an official statement, the two entities have agreed to terminate the proposed business combination.

Far Peak is headed by Thomas Farley, former president of the New York Stock Exchange.

aborted merger

Bullish has been audited by Deloitte and recently confirmed that it has no exposure to FTX or related entities. The Gibraltar-based exchange, which is backed by technology investor Peter Thiel, has planned to go public by merging with a special purpose company (SPAC), Far Peak Acquisition (FPAC), in July 2021.

Since then, the merger prospectus has undergone several revisions, but the SEC remains unsatisfied. The most recent one allowed the two companies to terminate the merger agreement on December 31 if it was not completed before then. But that deadline now seems impossible, given Friday’s announcement.

Commenting on the completed SPAC merger, Brendan Plumer, Chairman and CEO of Bullish, said that “the quest to become a public company” is taking longer than previously anticipated. He added that he “respects” the ongoing work by securities regulators to develop a relevant framework for the digital asset space. The director also noted,

“I am proud of the dedicated team of Bullish employees and advisors who have dedicated countless hours to ensuring that Bullish operates with the highest standards of transparency and accountability. This work has formed the operational foundation required to serve our clients in the best and safest way possible.”

SPAC encryption offers

As a result of the ongoing market turmoil, many planned mergers between Web 3 companies and SPACs have either been delayed or cancelled. SPACs, also known as blank check companies, are essentially publicly traded shell companies created to bring private companies into the public sector.

These entities have a reputation for being a discreet way to pitch to the public and have gained traction during the pandemic-driven market boom. In fact, SPAC deals are up by 81, and rose more than $155 billion last year.

Over the past couple of years, SPAC has become a preferred route for crypto companies looking to move beyond the traditional IPO. Several major players, including Cipher Mining, Bakkt, and Core Scientific, are entering merger deals with SPACs, but only five of 14 deals have actually been successful since 2019.

Crypto mining and infrastructure company Prime Blockchain finalized its $1.25 billion merger agreement with 10X Capital Venture Acquisition Corp II’s void verification vehicle in August this year.

Recently, USDC stablecoin issuer Circle finalized its merger agreement with SPAC partner Concord Acquisition.

Bullish Post Powered by Peter Thiel Pulling Plug on $9 Billion SPAC Deal appeared first on CryptoPotato.

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