The encryption trading platform Bullish strikes again at the US Capital Market

Recently, a well-known encryption institution has once again targeted the US Capital Market. A certain encryption trading platform, after failing to go public several years ago, has restarted its IPO plan. Against the backdrop of a gradually clarifying regulatory environment in the US and accelerated inflow of institutional capital, the platform is making another push into the capital market with its substantial early Bitcoin reserves and strong support from traditional capital. However, the platform still faces challenges such as revenue pressure and high customer concentration.

Compliance Layout and Capital Support, Resuming Listing Plans After Three Years

On July 18, the encryption trading platform submitted its IPO application documents to the U.S. Securities and Exchange Commission (SEC), planning to be listed on the New York Stock Exchange with the stock code "BLSH." The specific number of shares to be issued and the price range for the issuance have not yet been determined. This IPO is led by several top investment banks, including JPMorgan Chase, Jefferies Financial Group, and Citigroup. The SEC has granted underwriters the option to purchase additional shares within 30 days.

The platform's CEO stated: "We chose to go public at this time because we believe the digital asset industry is at the starting point of the next growth cycle. Transparency and compliance are core values of our operation, which aligns closely with the public Capital Market. Becoming a publicly listed company will bring us key advantages: enhancing our credibility, accessing more capital channels, and having equity currency for strategic acquisitions." He pointed out that the digital asset industry is at a turning point with institutional investors accelerating their entry, and the platform is well-equipped with sufficient resources and compliance models to embrace this wave of institutionalization.

In fact, this is not the platform's first attempt to enter the Capital Market. In 2021, just two months after its establishment, the platform announced its intention to go public through a SPAC merger, with a valuation of up to $9 billion and a proposed price of $10 per share. At that time, the platform also raised approximately $900 million through PIPE financing, with participation from several well-known investors.

The reason why the platform achieved a high valuation at that time was due to the substantial asset support from its parent company's investment, including $100 million in cash, 164,000 bitcoins, and 20 million tokens of a certain type. However, due to the dramatic changes in the global financial environment in the second half of 2022, the market's risk appetite plummeted, and encryption assets entered a bear market cycle, leading the platform to ultimately terminate its SPAC plan in the second half of 2022.

The recent restart of the IPO reflects the platform's keen response to changes in the market environment and strategic adjustments. On the one hand, U.S. market regulation is gradually becoming clearer, with multiple encryption institutions racing to advance their listing processes; on the other hand, traditional financial institutions are entering the digital asset space on a large scale, with Bitcoin and Ethereum spot ETFs continuously attracting investment, and a wave of listed companies hoarding coins, accelerating the compliance and institutionalization trends in the encryption industry. The platform is also gradually completing its global compliance layout, having established subsidiaries in multiple countries and regions, and obtained a virtual asset trading platform license issued by the Hong Kong Securities and Futures Commission (SFC).

In addition, the platform has also received support from heavyweight traditional capital. One of the important shareholders is one of the most influential investors in Silicon Valley, and the fund he founded is also one of the earliest and most steadfast investors in the platform. The CEO of the platform himself has rich experience in the Capital Market, having served as the president of the New York Stock Exchange Group, leading multiple listing projects and being familiar with the complete process of connecting with the public market.

Huge losses cannot hide the strong reserves, and the management's shareholding ratio is high

The platform's main business is divided into two parts: the exchange and encryption media. Among them, the encryption media business was acquired in November 2023, indirectly gaining over 6 million users and launching multiple data and analysis products, with revenue mainly coming from services such as advertising, sponsorships, event ticket sales, and data subscriptions.

According to the latest submitted IPO documents, as of March 31, 2025, the cumulative trading volume of the exchange has exceeded $12.5 trillion, with spot trading being an important business, achieving an average daily trading volume of $1.498 billion in 2024. In the first quarter of 2025, the platform's BTC and ETH spot trading volumes reached $108.6 billion and $52.3 billion, respectively, representing a year-on-year growth of 36% and 43%, claiming to be among the top ten mainstream digital currency trading platforms globally.

However, the document also points out that the core business of the platform has a significant customer concentration risk, heavily relying on large clients (institutional market makers, institutional arbitrageurs, and high-frequency traders), with the top five clients accounting for 69% of the spot trading volume and 83% of the trading revenue.

From the profit data, the financial performance of the platform has shown significant fluctuations in recent years. In 2022, the net loss reached $4.246 billion, while in 2024, a net profit of $79.56 million was achieved. However, in the first quarter of 2025, a net loss of $348 million occurred, which is a stark contrast to the net income of $105 million in the same period last year.

Despite pressure on performance, the platform still maintains ample liquidity. As of March 31, 2025, the platform holds liquid assets worth over $1.962 billion, including $1.735 billion in Bitcoin, $144 million in USD stablecoins, $28 million in cash, $22 million in Ethereum, and $33 million in other digital assets. Among these, the quantity of Bitcoin held has significantly decreased from approximately 66,720 at the end of 2022 to about 20,960 as of March 31, 2025, a reduction of more than two-thirds, which is currently mainly used for intangible assets, lending, and other receivables and investment funds. Total liabilities are approximately $700 million, including customer deposits, encryption asset liabilities, finance leases, and deferred taxes.

In terms of equity structure, the control of this platform is highly concentrated in the hands of the management, with several executives collectively holding more than 60% of the Class A common stock and the majority of the equity. Among the external institutional shareholders holding more than 5%, important shareholders include some investment companies and individual investors.

Overall, with the opening of the regulatory window and the recovery of the Capital Market, this encryption trading platform is trying to seize a ticket to enter the mainstream market. However, whether it can truly establish a foothold in the Capital Market still faces significant challenges in the future.