Bullish: A Closer Look At Earnings

Summary Bullish has seen volatile trading since its IPO, with shares down over 50% from their initial spike. BLSH's revenue is heavily reliant on crypto holdings, with transaction income declining and CoinDesk services showing growth but still limited overall ￰0￱ company is not yet profitable; Q2 profit is entirely due to crypto asset appreciation, masking underlying operational losses. I rate BLSH as a 'hold' due to weak earnings growth, inconsistent transaction volumes, and the need for a clearer technical and financial ￰1￱ ( BLSH ) IPO'd on 13th August and has already given holders a wild ride, first spiking to $118 and now trading more than 50% lower at $51.

This isn't necessarily a reflection of value, and many IPOs have followed a similar pattern only to stabilize and build a sustained trend ￰2￱ instance, Meta Platforms ( META ) dropped more than 60% after its IPO over the course of 16 weeks but then made a solid bottom and never looked ￰3￱ of the challenges in trading after an IPO is the limited information, not just on the company's financials and valuation, but also on technical aspects such as where support could ￰4￱ low so far is $47.88, but if that is exceeded, there is no reference level on the ￰5￱ is evident from the information we have is that BLSH has limited revenues and must grow to merit its market cap of $7.5B.

This article takes a look at the company's earnings and why they are not as bullish as the name ￰6￱ Streams BLSH has a variety of income ￰7￱ can be broken down into 3 areas: ￰8￱ (spread) ￰9￱ ￰10￱ of crypto ￰11￱ Document ￰12￱ Exchange BLSH has impressive figures for the volumes on its crypto ￰13￱ Document Unfortunately, volumes have been on the slide this year. Q2 may have been OK, but June was low, and subsequent months were even ￰14￱ Volumes fluctuate with macro factors, and it's worth noting Coinbase ( COIN ) also had a bad Q2, with transaction revenues falling 2% year-over-year and a significant 39% from ￰15￱ saw only 48.8B total trading volume for BLSH but had a much larger average trading spread, which may balance it out ￰16￱ and the spread size are often linked, but we saw relatively steady volumes in Q1 between 82.5 and 85.7B, and the spread varied from 1.47 to 1.90 ￰17￱ may need to hold this constant as much as they can to keep institutional clients ￰18￱ will report Q2 earnings on Wednesday, its first earnings report since the ￰19￱ company has already provided preliminary estimated ranges, which show an improvement in "digital asset sales" compared to the same period in ￰20￱ Document But what are "digital asset sales," and why are they "derecognized?" The IPO document explains : The difference between the digital assets sales and cost of digital assets derecognized was the net gain from digital assets sales arising from trading ￰21￱ other words, this is the profit the company makes from ￰22￱ came to a rather measly $15.5M from the ￰23￱ is down from the $22M made in the same quarter in 2024 despite the higher sales ￰24￱ is also down from the $26M posted in Q1 when trading volumes were ￰25￱ Document Here are the full-year numbers for 2024, 2023, and ￰26￱ Document The full-year revenue for transactions in 2024 was $96M.

It may come in less this year based on the $41M estimated for Q1 and ￰27￱ CoinDesk contains custom crypto indices available on the exchange and operates subscription-based ￰28￱ The revenue is reported under "other revenues." In Q1, there was $20.3M from this income stream, a huge rise from the same quarter last ￰29￱ Document The high-end estimate for Q2 is $32M, so this area is growing strongly and provides around double the revenue as transactions do. Still, the two revenue streams combined are around $47M, which is light for a company valued at $7.5B.3. Crypto Holdings BLSH holds around 24,000 Bitcoins and other crypto, which is reported in different ￰30￱ Document The changes in the fair value of these digital assets are reported on the balance sheet and often overshadow all the other ￰31￱ 2023, the change was a huge +$1.3B.

In Q1 of this year, there was a loss of $319M, but that has turned around in Q2, as the company reports: For the three months ended June 30, 2025, we expect change in fair value of digital assets held, net to be in the range of $68.5 million and $68.3 million, as compared to $(99.4) million for the three months ended June 30, 2024, driven primarily by mark-to market ￰32￱ the moment, the value of their crypto holdings is around $3B, which makes up nearly half of the market cap of $7.5B. Crypto holdings are often given a premium, so you could say the rest of the company is valued at around $3-4B, which doesn't seem too ￰33￱ a comparison, COIN has a market cap of $83B, but it also has Q2 revenue of $1.5B compared to the estimated $48M for BLSH.

It's worth noting BLSH does have non-IFRS financial measures and adjusted revenue figures of $57M, but I am basing my calculations on the full information provided on financial ￰34￱ Document Putting It All Together BLSH has around $15-26M in quarterly revenues from ￰35￱ has failed to grow and dropped quite significantly in ￰36￱ also has around $32M revenue from CoinDesk, which has grown healthily in recent ￰37￱ these together, and BLSH is not yet making a ￰38￱ estimated Q2 profit of $109M is entirely due to the crypto holdings rising in value by $155M. In other words, BLSH is due to make a loss of around $46M if it were not for its crypto ￰39￱ crypto holdings are valued at $3B, giving the rest of the company a valuation of $4.5B.

That could be justified if earnings were growing, but the lack of growth in transactions is a worry, as are the large swings in volume and lack of consistency. I rate BLSH a "hold" at the moment. I'd need to see better earnings growth and a better chart pattern (with a reversal and clear support) to consider buying.