Bullish, a crypto exchange backed by Peter Thiel is in talks to merge with a fintech-focused special purpose acquisition company(SPAC), Far Peak Acquisition Corp., according to people with knowledge of the matter. The exchange is expected to be valued at $12 billion during the deal.

Far Peak to Merge With Peter Thiel-backed Crypto Exchange In Weeks

Sources familiar with ongoing negotiations reported that an agreement between the two entities could be reached as soon as the next few weeks. Investors in the SPAC have already expressed approval for a PIPE (private investment in public equity) deal to secure funding for the merger. According to current estimates, Far Peak is valuing Bullish at $12 billion. However, the final price tag could change, depending on Bitcoin prices. 

Shares of Far Peak rose by a record intra-day high of 5.5% on Wednesday, suggesting the market’s favorable view of the merger.

It is increasingly common for crypto exchanges to go public with SPAC mergers these days. Recent examples include crypto exchange eToro and financial services platform SoFi, both of which opted to merge with blank check companies to go public.

A Brief Overview of Far Peak and Bullish

Founded in 2020, Far Peak is led by former NYSE president Tom Farley, and CFO David Bonnano, a former managing director at Third Point LLC. The company raised more than half a billion dollars in New York listing in December to target promising fintech projects.

The negotiations with Far Peak could mark a milestone for Bullish exchange’s founding company Block.one, which established the platform in May and injected $10 billion in digital assets and cash into it. Block.one is a blockchain software company funded by entrepreneur and venture capitalist Peter Thiel. The company also counts Hong Kong business czar Richard Li and German entrepreneur Christian Angermayer as its investors.

Bullish was launched shortly after Coinbase, the largest crypto exchange in the US secured a public listing on Nasdaq. The exchange was designed to offer access to market making, lending, and portfolio management services for retail and institutional investors without the need for intermediaries such as banks.