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Invezz 2025-08-13 20:06:51

Two big reasons why Bullish stock’s post-IPO gains may not sustain

Bullish remained the front and centre of all financial debates on Wednesday as the crypto-focused exchange backed by Block.one made a splashy entrance on Wall Street. Bullish priced its initial public offering (IPO) at an upwardly revised $37 . However, sharp interest from both retail traders and crypto enthusiasts pushed it well past $100 within hours of going live on August 13 th . That said, there’s reason to believe Bullish stock will fail to sustain today’s gains over the next few sessions. Beneath the surface, concerns of valuation and ownership concentration suggest BLSH’s meteoric rise could soon face gravity. Bullish stock price looks disconnected from fundamentals Bullish’s post-debut valuation appears wildly disconnected from its underlying fundamentals. As per numerous sources, the company’s revenue stood at a modest $250 million in 2024. Therefore, at the current price of $110 a share, with roughly 150 shares outstanding, Bullish stock is currently trading at a price-to-sales (P/S) ratio of more than 60 – massively above some of the more establish crypto names like Coinbase that’s trading at less than 13 only. And that’s when COIN has a diversified business model and proven earnings power. Investors are essentially pricing in years of flawless execution and exponential growth – without the track record to justify it. In short, Bullish stock at north of $100 looks more like a speculative bet than a rational investment – as long as revenue remains modest and profitability elusive. BLSH shares ownership concentration raises a red flag According to BLSH’s regulatory filings , Brendan Blumer, the former chief executive of Block.one, will retain his 30.1% stake in the crypto company after its initial public offering. Additionally, board member Kokuei Yuan will continue to hold roughly 26.7% as well. That means over 56% of the company remains in the hands of just two insiders, even after going public. While high insider ownership is often touted as a sign of alignment, it can also prove a significant red flag for public investors. With Blumer and Yuan collectively controlling nearly 57% of the company post-IPO, governance risks loom large. Such concentrated control can stifle shareholder influence, limit board independence, and reduce transparency around strategic decisions. Minority investors may find themselves sidelined in key matters like capital allocation, executive compensation, or M&A activity. Worse, if insiders choose to sell large blocks of shares later, it could flood the market – potentially exerting pressure on the Bullish stock price. How to play Bullish shares after the company’s IPO? In conclusion, BLSH explosive debut feels more like a sentiment-driven event than a reflection of intrinsic value. While the company may have long-term potential, the current price action suggests investors are chasing momentum rather than substance. For those considering entry in Bullish shares at these levels, caution – not conviction – should be the guiding principle. The post Two big reasons why Bullish stock's post-IPO gains may not sustain appeared first on Invezz

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