Bullish Bets Rise On Crypto Exchange 'Bullish'

After a blockbuster IPO last month, crypto-exchange Bullish turned the corner, swinging to a profit in its first earnings report since going public .

The firm reported a profit of $93 million, or 93 cents per share, for the June quarter, compared to a loss of $116.4 million, or $1.03 per share, during the second quarter last year.

That earnings report was better than Wall Street's bets.

The CEO, Tom Farley, said,”We are pleased with our results for the quarter - we saw exciting liquidity services growth, executed on a successful Consensus conference, and prepared for what would be a successful IPO. We’re excited that the work we did in the second quarter is already directly contributing to strong business momentum in the third quarter and beyond."

In addition to the nearly 6% surge during the NY trading session, the firm's shares gained 4.2% in after-hours trading.

Shares of the institutionally focused global digital asset platform are now trading at $53.54, a 44% increase from its IPO price of $37.

The outlook too got a lift after the firm received a business license for virtual currency activities, issued by the New York State Department of Financial Services (NYSDFS).

The BitLicense paves the way for the firm's US market entry in the next quarter to legally service advanced traders in the nation's financial capital.

In a press release on Tuesday, Farley said, “New York is widely recognized as being at the forefront of virtual currency regulation,” said Tom Farley, CEO of Bullish."

That is a significant step in Bullish's quest to expand after being regulated only in three countries — Germany, Hong Kong, and Gibraltar — until now.

On Wednesday, after the earnings report, the CEO said, "Our recent receipt of the prestigious New York DFS Bitlicense is testament to our institutional rigor and truly global reach.”

This achievement is just the latest in Bullish's long line of impressive regulatory credentials.

Bullish on 'Bullish'

The license is a direct result of Cathie Wood's ARK Invest amplified exposure to the company on Wednesday.

With a combined value of approximately $8.21 million, the ARK Innovation ETF and the ARK Next Generation Internet ETF each acquired 120,609 and 40,574 shares, respectively.

Earlier in the week, investment bank Keefe, Bruyette & Woods (KBW) gave Bullish a "market perform" rating and a price target of $55.

For KBW, Bullish's expansion in the US is the driving force, and the investment bank dubbed the crypto exchange "a rare public play".

Bullish is one of several crypto-native firms that have recently entered the public market, benefiting from the regulatory environment that has become more accommodating to digital assets during the Trump administration.

What Next?

Bullish expects higher profits for the current quarter, with the adjusted revenue pegged at $69.0M-$76.0 million.

Compared to the same quarter a year ago, the company's trading volume increased significantly, reaching $179.6 billion.

Bullish, the owner of CoinDesk, forecasts a trading volume between $133 billion and $142.0 billion for the current quarter.

Brokerage Bernstein predicts that Bullish may challenge Coinbase in the US market if it is successful in growing its presence in the country.

According to Bernstein, the platform's capacity to carry out its US launch plans, which are currently scheduled for next year, will determine the firm's success.