Bullish (BLSH) Hits New Low Ahead of Earnings as Bitcoin Tests $90,000

Bullish (NYSE: BLSH), the institutionally-focused digital asset platform, is facing headwinds as its stock price hit a new low of $36.02 ahead of earnings. BLSH has fallen 17% in the last week, and 35.74% over the past month, as bearish pressure increased on crypto names.

Bullish's decline is not coming in isolation, but against the backdrop of a broader market pullback in the sector. Bitcoin has bounced off $90,000 in recent sessions, having traded up in the $120,000 range as recently as last month, with other names in the cryptocurrency ecosystem such as Strategy (MSTR) dropping 30% on the month, Coinbase (COIN) down 24%, and Circle (CRCL) 41% lower on the period.

Looking to earnings, analysts expect an EPS of $0.10 and anticipated revenue of about $71.25 million. These estimates suggest steady growth, reflecting a cautiously optimistic outlook for the company’s near-term financial performance.

Bullish's IPO on August 14th, was met with considerable fanfare. The company offered 30 million ordinary shares at $37.00, raising over $1 billion. The offering was increased due to strong demand, mirroring the enthusiasm seen in Circle Internet Group's IPO earlier in the year. However, the initial excitement appears to have waned, with the stock now trading 44% below its closing price on IPO day.

The company's Q2 2025 financial performance, which included a net income of $108.3 million and crypto sales of $58.6 billion, initially provided a boost to the stock. However, broader market volatility and perhaps concerns about the sustainability of high growth in the crypto sector seem to have tempered market enthusiasm.

Despite the recent price decline, analysts maintain a consensus “Buy” rating for BLSH, with an average price target of $56.91. This target implies a potential upside of more than 45% from the current price. Expected EPS figures are $0.08 for the current quarter, $0.16 for the next quarter, $0.27 for the current year, and a more substantial $0.90 for the next year.

However, the high beta of 3.29 indicates that BLSH is significantly more volatile than the overall market. This heightened volatility, coupled with the inherent risks associated with the cryptocurrency market, may be giving some pause.

While the prevailing narrative focuses on the challenges facing Bullish, it's possible that the current price dip may represent a buying opportunity. The company's focus on institutional clients, its innovative approach to capital management (receiving IPO proceeds in stablecoins), and the long-term growth potential of the digital asset market could all contribute to a significant rebound.

Any signs of weakness or uncertainty could further depress the stock price, while a strong performance could trigger a bounce off these depressed levels. The market will be paying close attention to forward guidance, especially given the recent volatility in the cryptocurrency market.