Bullish · NYSE:BLSH
Bullish — SPAC Merger (July 2021)
55 slides from Bullish's SPAC merger presentation, July 2021
Slide 1: Investor Presentation July 2021
Investor Presentation July 2021 Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global.
Slide 2: Disclaimer and Risk Factors
Disclaimer and Risk Factors The information provided in this presentation pertaining to the proposed business combination (the “Business Combination”) between Far Peak Acquisition Corporation (“FPAC”) and Bullish Global (together with its subsidiaries, “Bullish”) is for informational purposes only t
Slide 3: Disclaimer and Risk Factors (Cont'd)
Disclaimer and Risk Factors (Cont’d) The forward-looking statements, including the Illustrative Model, contained in this presentation are expressly qualified by this cautionary statement. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statement
Slide 4: Disclaimer and Risk Factors (Cont'd)
Disclaimer and Risk Factors (Cont’d) Risk Factors Bullish is subject to a broad spectrum of risks and uncertainties that may lead to actual events, results or performance to differ materially from what is represented in this presentation. Key risk factors include: Risks related to the timing and lik
Slide 5: Bullish Leadership
Bullish Leadership Chairman Chief Executive Officer1 Co-Founder and CEO of Block.one Former President of NYSE Visionary founder with track record of World-class exchange leader for 15 years exceptional shareholder returns Heavily involved in several initiatives at ICE that contributed Led the succes
Slide 6: The Bitcoin and crypto liquidity market is lucrative but inefficient
The Bitcoin and crypto liquidity market is lucrative but inefficient, and primarily consists of exchanges that prosper at the expense of asset holders Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 6
Slide 7: Many exchanges foster excess volatility
Many exchanges foster excess volatility with: | Bitcoin (BTC) Price 3-12-2020 « Highly leveraged products, up to 100x = Limited fiat collateral options ote “ , < theme nm = Rapidly changing lending rates up to 400% ol estes per annum iy * Inconsistent and probabilistic liquidation Se e Liquidations
Slide 8: Exchange Revenues Exceed US$70b per Annum
Exchange Revenues Exceed US$70b per Annum YTD 2021 Annualized Volume Mix and Estimated Revenue Pool May 15, 2021 Spot and Derivative Volume Mix by Trading Venue EOS 5% Binance Kraken 43% 4% FTX 4% OKEX ETH 37% US$70b+ BTC 7% 58% Other 15% Huobi 15% Coinbase Pro 11% Note: Company estimate for annual
Slide 9: Crypto holders reap none of the rewards
Bitcoin and crypto holders, who provide liquidity and the network effects that exchanges rely upon, typically reap none of the rewards Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 9
Slide 10: Asset holders harmed by market inefficiencies
Asset holders are further harmed by these market inefficiencies in the form of suppressed asset appreciation Excessive Excessive Downward Volatility Fees Sell-Pressure Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 10
Slide 11: Volatility and fragmentation expose traders to hidden slippage costs
Excessive volatility and liquidity fragmentation expose traders to hidden slippage costs Other Exchange Exchanges Trader Exchange Market Fees Making Fees Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 11
Slide 12: The astronomical rise of decentralized finance
In response to this inequity, we have seen the astronomical rise of decentralized finance (DeFi) over the last 12 months Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 12
Slide 13: The Rise of DeFi
The Rise of DeFi DeFi market structure automates exchange, portfolio management, lending and market-making functions to drive more value back to end users Total Value Locked in DeFi Source: DeFi Pulse ae But the current DeFi landscape leaves room for significant advancements: = Compliance « User-pri
Slide 14: We redesigned the exchange
We redesigned the “exchange” to benefit asset holders, enable traders, and increase market integrity #bullish Confidential property of Bullish Global. Do not distribute or reproduce without express permission from Bullish Global. 14
Slide 15: Bullish Combines the Best of Central Order Books and DeFi Exchanges
Bullish Combines the Best of Central Order Books and DeFi Exchanges Bullish + Proprietary hybrid order book combines Traditional Crypto Exchanges Decentralized Finance Exchanges Liquidity Pool capability with a CLOB + High performance Central Limit Order + Deterministic liquidity and lending with +
Slide 16: Bullish is powered by Liquidity Pools optimized to generate yield
Bullish is powered by Liquidity Pools that are optimized to generate yield Automate Portfolio Management Earn Passive Income Deposit weighted portfolio of two assets, Trading Fees Real time rebalancing. • Liquidity Pool trading fees ex. 50% BTC & 50% USD • LMT order fees 90% BTC & 10% EOS Lending Yi
Slide 17: Bullish Provides Asset Holders With the Ability to Earn Yield
Bullish Provides Asset Holders With the Ability to Earn Yield Bitcoin data is from Jan 1, 2019 - Apr 27, 2021 Based on US$5b BTC/USD Liquidity Pool Deposit 60:50 BTC/USD Basket Bullish Liquidity Pools Liquidity Poole Assets & Yield All values in USD mY Hi Principal Illustrative backtesting. Coinbase
Slide 18: Traders Experience the Bullish Hybrid Order Book
Traders Experience the Bullish Hybrid Order Book Hybrid Order Book Bid Ask Depth Benefits to Traders Price Deep and predictable liquidity across highly variable market conditions Deterministic margin lending that is transparent and designed to remain financially solvent The Bullish AMM will provide
Slide 19: Bullish's US$6.5b treasury will participate in the Liquidity Pools
Bullish's US$6.5b treasury will 1 participate in the Liquidity Pools to generate revenue and reinforce competitive advantages 1. Refer to Illustrative Transaction Summary. Participation amount will vary Confidential property of Bullish Global. Do not distribute or reproduce without express permissio
Slide 20: The Bullish Treasury
The Bullish Treasury Earns and Adds Liquidity Creates Barriers and Competitive Creates Trust and Displays Alignment Advantages Compounding earnings from Market leading balance sheet strength and pair-driven revenue streams such By removing dependence on third-party its deployment across Bullish's ow
Slide 21: Bullish Powers Traders With Best-in-Class Liquidity
Bullish Powers Traders With Best-in-Class Liquidity Market-leading liquidity enabled by balance sheet size (BTC and USD) and transparent Liquidity Pool At launch, Bullish expects to operate Liquidity Pools in pairs covering: = BTC = USD -EOS »ETH » USDT a sfidential property of Bush Global Do net di
Slide 22: Bullish Launch Expected To Coincide With Public Market Entry
Bullish Launch Expected To Coincide With Public Market Entry Early 2019 July 2021 2H 2021 Bullish Invite-only Pilot1 for Official Public Launch Conceptualization Institutional and with Bullish Liquidity for Retail Traders Retail Clients November 2020 2H 2021 TBC 2021 Closed Internal Beta with Instit
Slide 23: Illustrative Transaction Summary
Illustrative Transaction Summary (US$ and millions, except per share figures) Sources & Uses 1 Pro Forma Valuation Sources Amount % Share Price US$10 Pro Forma Shares Outstanding (millions of shares) 903 Cash in Trust US$600 6.6% Pro Forma Equity Value US$9,027 PIPE US$300 3.3% (+) PF Debt -- (-) Pr
Slide 24: A Bullish Investment
A Bullish Investment Growing cryptocurrency US$6.5b balance sheet1 The Bullish leadership Innovative hybrid order market represents a is a strategic asset and team has an exceptional book with a clear path significant opportunity allows Bullish to deliver track record of to exchange scale and as mai
Slide 25: Bullish Exchange
Bullish Exchange May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 25
Slide 26: Beta Trading Interface
Bullish Exchange Beta Trading Interface List Wade Pee 2H Oh hve 57,285.0 USD 247.668 7,633 Bre Margin Orderbook rice Chart Depth Chart epee oh g Gay Corer) met See) a Macy aunt 006850569 Mid $7,227.18 USD Spread 11447 USD > Advanced Options : ocosessose 50 7 202118410 30 pr 200 84056 80 pr 700 4042
Slide 27: Beta Trading Interface
Bullish Exchange Beta Trading Interface = 7486892 Ne “onfdential property of Bullish Global Do not dietrbute or reproduce 18 permission from Bullish Global
Slide 28: Beta Trading Interface
Bullish Exchange Beta Trading Interface 57,298.7 USD ‘Wades ree (80) 10. 2000c000 ee nanone sees TimitPrice 3 s 7.405 onssseot aas34s37 1 sad 87,386.05 USD Spread 114.7 Uso 70s 0099001 8130032 a Confidential property of Bullish Global. Do not cistibute or reproduce without express permission from Bu
Slide 29: How Bullish Generates Revenues
Bullish Exchange How Bullish Generates Revenues Exchange Revenues primarily from: Market Making Revenues – Fees generated from trading activity on the hybrid order book, which comprises market maker fees and LMT order fees Margin Market Interest Fees Making Fees Margin Revenues – Fees generated from
Slide 30: Strategic Growth Framework
Bullish Exchange Strategic Growth Framework Crypto is relatively nascent compared to equities, fixed income and other asset classes… …providing Bullish opportunity for growth through M&A and new product development Experienced management team with Young, but rapidly growing Public currency will attr
Slide 31: Crypto Market Dynamics
Crypto Market Dynamics May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 31
Slide 32: Crypto is a Large, Rapidly Growing and Evolving Market
Crypto Market Dynamics Crypto is a Large, Rapidly Growing and Evolving Market Crypto markets are growing exponentially both in terms of market capitalization and trading volumes As trading volume and institutional cryptocurrency activity continues to increase, there will be greater demand for high q
Slide 33: Key Growth Drivers of Crypto
Crypto Market Dynamics Key Growth Drivers of Crypto Expanding Global Retail Adoption Increased Access to Institutional and Corporate Acceptance Trading Adoption 86% 8% Familiar brands providing Over $64 billion in institutional of central banks are of US individuals own increased access to crypto AU
Slide 34: Bancor-Based DeFi Liquidity Pools Have Generated Significant Liquidity
Crypto Market Dynamics Bancor-Based DeFi Liquidity Pools for the Largest Crypto Assets Have Generated Significant Liquidity and Trading Volume Uniswap V2 ETH-USDT ADV / Pool Size 90% 80% 70% 60% 50% 40% 30% 20% Bullish 10% Simulation 0% Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21
Slide 35: Go-to-Market Plan
Appendix I Go-to-Market Plan May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 35
Slide 36: Global Reach
Appendix I : Go-to-Market Plan Global Reach Key markets at launch Target markets where licensing approach is being determined Note: Available features may vary by market subject to applicable regulatory constraints. Bullish intends to hold only a GFSC DLT license at launch. We intend to comply with
Slide 37: Retail and Institutional Segments
Appendix I : Go-to-Market Plan Retail and Institutional Segments Institutional Segment Institutions Institutional Investors: Companies whose primary business is investing Institutional Investors Financial Services Corporates Other Corporates Financial Services Corporates: Other financial services co
Slide 38: Liquidity Pool Primer
Appendix II Liquidity Pool Primer May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 38
Slide 39: What is a Liquidity Pool?
Appendix II : Liquidity Pool Primer What is a Liquidity Pool? USD / BTC Pool USD / EOS Pool USD USD Assets in Liquidity Pools are always held as pairs, segregated for trading pairs available on the exchange and for which Liquidity Pools exists1 X Holding separate pairs of assets in Liquidity Pools i
Slide 40: Strategic Balance Sheet Provides a Liquidity and Price Advantage
Appendix II : Liquidity Pool Primer Bullish’s Strategic Balance Sheet Provides a Liquidity and Price Advantage Larger Liquidity Pools allow for better depth of market (illustrative) Smaller Liquidity Pool $5 million + 100 BTC Client Buying BTC Bid Ask $5 million + ($50,000 x 1 BTC) Hypothetical situ
Slide 41: Other Exchange Operations
Appendix III Other Exchange Operations May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 41
Slide 42: Bullish Exchange Overview
Appendix III : Other Exchange Operations Bullish Exchange Overview 1 Customer Account Trading Spot 2 Bullish Hybrid Order Book 3 Customer Account Trading Margin Margin Wallet AB Spot Wallet AB Spot Wallet AB Margin Wallet AB A A A A Hybrid Order Book B B B B 6 Customer Account Providing Liquidity 5
Slide 43: Margin Services
Appendix III : Other Exchange Operations Margin Services Leveraging stable liquidity, Bullish gives liquidity providers a uniquely safe way to lend without risk of default Low Demand High Availability Liquidity Demand High Demand Margin Lending Low Availability Depth of liquidity taken in Low liquid
Slide 44: Custody Overview: A Layered Approach to Custody Security
Appendix III : Other Exchange Operations Custody Overview Security Oversight Cash balances will be Advantage of on-chain held in banks with means we will always crypto experience have a real-time A Layered Approach to Custody Security and with strong immutable ledger of fiduciary standards individua
Slide 45: Custody Overview: Tiered Approach to Wallet Architecture
Appendix III : Other Exchange Operations Custody Overview Tiered Approach to Wallet Architecture Bank Account 3rd Party Custodian 3rd Party Custodian(s) (Customer Assets) (Customer Assets) (Bullish Operational Assets) At any time, the majority of crypto assets will be held in offline cold storage ut
Slide 46: Compliance and Regulation
Appendix IV Compliance and Regulation May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 46
Slide 47: Robust, Institutional Caliber Regulatory Compliance Framework
Appendix IV : Compliance and Regulation Bullish Has a Robust, Institutional Caliber Regulatory Compliance Framework Oversight Quarterly reporting to the board Negative advice reporting Application and regulatory coordination Regulatory Board and Senior management advisory Licensing Policy Compliance
Slide 48: Increased Regulation Has Contributed to Growth in Numerous Asset Classes
Appendix IV : Compliance and Regulation Increased Regulation Has Contributed to an Explosion of Growth in Numerous Asset Classes Over Time Energy Markets Post-Enron Treasury Markets post-TRACE Natural Gas Monthly Futures Volumes1 T-Bill Annual Volumes, primary dealers ($b)2 5,000 180 4,545 Fall of E
Slide 49: Other
Appendix V Other May 01, 2021 Confidential property of block.one. Do not distribute or reproduce without express permission from block.one. 49
Slide 50: World-Class Talent and Crypto Leaders
Appendix V : Other World-Class Talent and Crypto Leaders Bullish Global Board of Directors Advisory Board Brendan Blumer Kokuei Yuan Andrew Bliss Peter Thiel Co-Founder and CEO Executive Chairman CSO of Block.one Senior Advisor of Block.one of Block.one Peter is an entrepreneur and investor who co-f
Slide 51: Corporate Structure
Appendix V : Other Corporate Structure Injected Cash & Crypto Assets Cash New Block.one Investors (Cayman) Investors Bullish Global (Cayman) Public listing of this entity or parent ListCo IP Bullish HK Bullish SG Bullish (GI) Bullish Bullish Bullish US LLC Limited Pte Ltd (USA) Limited Capital Ventu
Slide 52: BTC/USD Liquidity Pool Average Daily Volume Sensitivity
Appendix V : Other BTC/USD Liquidity Pool – Average Annualized Daily Volatility 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Daily Volume (ADV) Sensitivity Dislocation Spread 4.8 5.4 6.0 6.6 7.2 7.8 8.4 9.0 9.5 10.1 10.7 11.3 11.9 (in bps) Pool Size (US$k) ADV of Arbitrage Volume (US$k) Prim
Slide 53: Illustrative P&L Sensitivity
Appendix V : Other Illustrative P&L Sensitivity Liquidity Pool ADV US$800,000 US$1,000,000 US$1,200,000 US$1,400,000 US$1,600,000 US$1,800,000 Third Party Maker ADV US$80,000 US$100,000 US$120,000 US$140,000 US$160,000 US$180,000 Annual Revenue and EBITDA As % of Liquidity Pool ADV US$880,000 10% US
Slide 54: Bullish Has a High Multiple Peer Group
Appendix V : Other Bullish Has a High Multiple Peer Group EV / 2023E EBITDA Crypto Electronic Platforms Exchanges Online Brokers 49.0x 31.8x 30.8x 24.4x 26.2x 23.3x 19.1x 20.7x 23.4x Median = 23.4x 14.7x 16.9x 1 1 2022E – 2023E Crypto Electronic Platforms Exchanges Online Brokers Revenue Growth 59.4
Slide 55: Modeling Methodology
Appendix V : Other Modeling Methodology ADV Sensitivity Model Methodology Total Bullish Revenue Model Methodology (Assuming BTC/USD-Only Liquidity Pool) (Extrapolated From BTC/USD-Only Liquidity Pool) Simulated arbitrage-driven Liquidity Pool volume for: Used findings from BTC/USD-only Liquidity Poo