Bullish International surges on strong quarterly revenue

Shares of Bullish International surged on Thursday after the digital asset exchange reported stronger-than-expected quarterly revenue, lifting its stock to a five-month high.

The company posted revenue of $124.7 million for the three months ended March 31, a 42% increase from the same period last year and above the $110 million consensus estimate compiled by analysts. Net income rose to $18.3 million, up from a $5.2 million loss in the prior-year quarter.

Bullish International attributed the revenue growth to higher trading volumes and increased institutional adoption of its platform. Daily average trading volumes rose 35% sequentially to $1.8 billion, while the number of active institutional accounts grew by 22% over the same period.

The company also raised its full-year revenue guidance, projecting between $480 million and $520 million, up from its prior range of $420 million to $460 million. Analysts had expected revenue of $475 million for the full year.

Bullish International’s stock, which had been trading flat for much of the year, jumped 12% in early trading before paring gains to 8% by midday. The shares are up 34% over the past month, outperforming the broader cryptocurrency sector.

The company’s market capitalization now stands at $2.1 billion, up from $1.6 billion at the start of the quarter. Institutional investors, including hedge funds and asset managers, have increased their holdings by 15% over the past three months, according to recent filings.

Bullish International operates one of the largest regulated digital asset exchanges globally, with a focus on institutional clients. The company went public via a $1.5 billion merger with a special purpose acquisition company in November 2021.