A unit of SoftBank Group is set to invest $75 million in Bullish, a new cryptocurrency exchange Block.one announced earlier in May. According to documents filed on 9 July with the U.S. Securities and Exchange Commission, SoftBank’s subsidiary SB Northstar LP will acquire 7.5 million Bullish shares for $10 each.
SB Northstar LP will also buy 3 million warrants to purchase shares of Far Peak, the SPAC tasked with taking Bullish public. The unit will acquire the warrants either from the sponsors of SPAC, or its anchor investors, which include funds managed by BlackRock. James Cassel, the Chairman of Cassel Salpeter & Co., told Bloomberg the seller will take a $1.5 million loss by selling the warrants to SoftBank below cost. This is often done by SPACs to attract high-profile investors, he explained in an interview.
Upon the completion of the SPAC transaction, Far Peak’s CEO Thomas Farley will become the new CEO of Bullish. Farley previously served as a president of the New York Stock Exchange (NYSE).
SoftBank made the commitment through a $300 million private offering Bullish held last week, the filings showed, but Bullish hasn’t identified it as one of the buyers in any of its press releases.
Earlier this month, SoftBank invested $200 million in Mercado Brazil. The bank participated in the exchange’s Series B funding round held at the end of June, making it the largest investment it has ever made into a Latin American crypto company. SoftBank has previously invested in various cryptocurrency companies, but most of its bets in crypto have been much smaller both from its Bullish acquisition and its Mercado Brazil investment.