Crypto Exchange Bullish and Far Peak Cancel $9 Billion SPAC Deal

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

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

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 income, investment and trading more accessible and rewarding.

According to the press release, the merger was halted 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 negotiate its F-4 registration with the Securities and Exchange Commission. These forms are required for registration of securities issued by parties outside the United States and are filed in mergers, consolidations, and similar transactions. Bullish is based in the Cayman Islands and Peak Acquisitions is in the United States

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

This is most likely to take longer than usual due to increased regulatory scrutiny of the crypto industry following recent events.

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

Thomas Farley, chairman and CEO of Far Peak, expressed disappointment at the termination of the deal, but praised Bullish. However, given time constraints and market conditions, the company does not plan to seek a new merger.

We are disappointed that we were unable to present the bull trade to our Far Peak shareholders,” Farley said. The bulls’ achievements since inception have lived up to our expectations, and their daily trading volumes highlight their remarkable growth.

The termination of the merger also follows a recent trend of similar deals in the crypto industry, with high market volatility and growing regulatory attention. Israeli crypto platform eToro mutually agreed to cancel its SPAC deal with acquisition firm FinTech Acquisition Corp V in July and USDC stablecoin issuer Circle Internet Financial Inc. and Concord Acquisition Corp. ended their merger proposal earlier this month.

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