Cryptocurrency exchange Bullish is seeking a valuation of $4.23 billion (£3.2bn) in a US initial public offering, the Cayman Islands-based firm said in a regulatory exchange on Monday.

The company, which owns crypto news site CoinDesk, plans to offer 20.3 million shares for $28 to $31 each, it said in its US Securities and Exchange Commission filing.

BlackRock and ARK Investment Management are separately interested in buying up to $200m of shares in aggregate at the IPO price, the filing said.

Market interest

Bullish has said in marketing presentations that it expects the shares to price on 12 August.

The targeted valuation is significantly reduced from Bullish’s previous effort in 2021 to go public via a merger with a special purpose acquisition company, or SPAC, which would have valued it at about $9bn.

Bullish abandoned that plan in 2022, citing regulatory hurdles, at a time when the SEC was pushing crypto firms to abide by existing securities regulations.

More crypto companies have lined up for IPOs in recent months amidst a welcoming stance from the White House and the passage of crypto legislation, such as an act that provides an initial regulatory framework for stablecoins.

Circle Internet Group, which provides crypto stablecoins, received an enthusiastic welcome from investors for its IPO on the New York Stock Exchange in June and continues to trade at more than 400 percent of its initial pricing.

Bullish, backed by entrepreneur Peter Thiel, plans to convert a significant portion of the proceeds from its IPO to US dollar-denominated stablecoins through one or more issuers of such tokens, it said in the filing.

The company, whose chief executive Thomas Farley is a former president of the NYSE, offers crypto spot trading, margin trading and derivatives trading focused on institutional investors, according to its filing.

Crypto fluctuations

The margins and derivatives products are not currently available in the US. It also offers liquidity services for stablecoin issuers.

It bought CoinDesk, which provides market data and indices in addition to its new services, from Digital Currency Group in 2023 for $72.6m.

The company had a $349m loss for the quarter ended 31 March, compared to a profit of $105m a year earlier, reflecting a fall in the value of its crypto holdings.

The offering is being led by JPMorgan Chase, Jeffries and Citigroup.