BLSH IPO: Peter Thiel-backed crypto exchange operator Bullish soars as Bitcoin hits fresh record high at $124,000 in ‘Crypto Summer’

Peter Thiel-backed cryptocurrency exchange operator Bullish (BLSH) soared on debut and shares are surging again on Thursday.

The stock traded 16% higher in the pre-market on Thursday to $79, more than doubling the IPO price of $37 a share. However that's still down from yesterday's opening price - Bullish stock opened for trade at $90 on Wednesday, trading as high as $118 at one point. It was halted several times for volatility.

It comes as crypto markets ride the risk rally with Bitcoin hitting a record high above $124,000, as investors pile into bets that the Federal Reserve is set to cut rates.

What investors need to know about BLSH

Bullish is a cryptocurrency exchange operator backed by tech investor Peter Thiel.

The IPO, which raised $1.1bn, was second attempt by the company to go public in the four years since launching in 2021.

The Bullish Exchange, a spot and derivative digital asset exchange institutional clients, processed an average $2.6 billion in daily volume through Q1, according to the company's prospectus.

It's top 3 global regulated spot trading volume market share for BTC, with growth of 78% in trading volumes in Q1, according to the IPO prospectus.

The exchange offers more than 115 pairs, including 70+ spot and 45+ perpetual futures.

Competitors include established names such as Coinbase and Binance.

Bullish owns the trade publication CoinDesk.

Strong IPO indicates solid investor appetite for fresh listings and crypto-related stocks after Circle Internet went public in June. Other prominent IPOs this year include CoreWeave and Figma.

The IPO drew institutional interest with the prospectus noting that BlackRock and Cathie Wood's Ark Invest expressing interest in purchasing up to $200 million worth of shares. Ark Invest bought 2.53 million shares of Bullish on Wednesday.

Key considerations

Investors should be mindful of the volatility in the stock, as evidenced by the market gyrations over the last two days. Other tech/crypto IPOs this year such as Circle and CoreWeave have been followed by significant movement in stock prices.

While Bullish may offer exposure to the cryptocurrency sector, it cannot be seen as a straight proxy for crypto assets since it exposes investors to stock-specific risks, in addition to the inherent risks associated with the crypto market.

And although the crypto market has experienced tailwinds this year due to the passing of the Genius Act in the US, the outlook will continue to depend on regulatory developments.