SB Northstar, an investment arm of Tokyo-based SoftBank Group Corp. has agreed to invest $75 million in Bullish, Block.one’s new subsidiary crypto exchange.
As per documents filed with the U.S. Securities and Exchange Commission, SoftBank will purchase 7.5 million shares for $10 each at the time of Bullish’s upcoming special purpose acquisition (SPAC) deal. Bullish has been valued at $9 billion.
Block.one’s new subsidiary Bullish is backed by billionaire investor Peter Thiel and crypto investment companies like Galaxy Digital and is on track to go public by the end of 2021 through a SPAC merger with Thomas Farley’s Far Peak Acquisition Corp . A former president of the New York Stock Exchange, Farley, will become Bullish’s CEO. While Block.one CEO Brendan Blumer will serve as the chairman.
Well, the SB Northstar made the commitment via a $300 million private offering that Bullish held last week, as per the filings, but interestingly it was not identified in a
subsequent release as one of the buyers.
The SoftBank will unit will also acquire the Far Peak warrants from either the sponsors of the SPAC or its anchor investors, which include funds managed by BlackRock Inc.,
says the filing.
The seller will take a $1.5 million loss by selling the warrants below cost,
reported Bloomberg, that’s a step that SPACs may take to attract high-profile investors, said James Cassel, chairman of Cassel Salpeter & Co.