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Coincheck, Japan’s No. 2 cryptocurrency exchange, is poised to make its debut on Nasdaq this Wednesday. It is gaining this milestone through a union with Thunder Bridge Capital Partners IV, a Special Purpose Acquisition Company (SPAC).
After the deal, Coincheck will be among the few crypto exchanges to be publicly traded in the U.S., joining Coinbase.
The merger, which was originally proposed back in 2022, values the exchange at $1.25 billion. But more recent estimates indicate the combined firm, named Coincheck Group N.V., will open with a market cap of around $1.3 billion, according to Coincheck’s parent company, Monex Group.
The Road to Nasdaq
The paperwork to go public on Nasdaq involved submitting the final F-4 filing with the U.S. Securities and Exchange Commission (SEC), which approved this in November. Last week, shareholders approved the merger, the last step before its official listing with the ticker “CNCK.”
Coincheck’s path to the public market faced some challenges. Enhanced disclosure obligations for SPACs that were adopted earlier in the year slowed the process. Yet the exchange’s leadership had its eye on the ball, pledging to use its Nasdaq listing to raise international visibility and facilitate worldwide growth.
That’s a line from a statement Coincheck gave in November explaining its strategy:
“Going public will allow us to gain exposure to international investors and at the same time utilize Nasdaq-listed shares as an effective tool for recruiting top talent and an effective means for a capital increase through M&A to expand our crypto asset business.”
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The de-SPAC process refers to the merger of a privately owned company with a SPAC, or special purpose acquisition company, a shell firm that is formed to raise money through an initial public offering (IPO) for purchasing other companies. Thunder Bridge IV, the SPAC that is facilitating this transaction, raised $230 million at its IPO in June 2021.
The transaction gives Coincheck a quick route to public markets, avoiding a traditional IPO. Financial firms including Galaxy Digital, Barclays Capital, and Cantor Fitzgerald & Co. advised Thunder Bridge, while Monex hired J.P. Morgan Securities to manage the transaction.
Rising above a history of hardship
The story of Coincheck is one of resilience. The exchange was hacked in 2018 in one of the biggest crypto hacks in history, where $530 million worth of NEM tokens were stolen.
Impossible, the platform used its own reserves to repay all 260,000 affected users. This event led to stricter regulatory standards in Japan, including stronger KYC measures, which were fully implemented by Coincheck.
Monex Group purchased Coincheck for ¥3.6 billion ($33.6 million) later that year, guiding the exchange through a recovery period. Under Monex’s leadership, Coincheck reconstituted its underpinnings, regained user confidence, and prepared itself for this major public offering.
A Nasdaq debut for Coincheck in line with wider trends
Coincheck’s public listing comes at a time of revitalized interest in cryptocurrencies, fueled by soaring Bitcoin prices and increased participation from institutions. The Nasdaq listing represents a step that will allow Coincheck to broaden its scope and compete on a more international scale.
It comes after Coinbase made history with a direct listing on Nasdaq back in 2021 that paved the way for more crypto shops to make their way into traditional finance. A better example is Bakkt, which went public that year through a SPAC merger.
A Look Ahead
As Coincheck moves forward with this milestone, its management remains positive in its outlook for the future. – Helmed by Oki Matsumoto as executive chairman of Coincheck Group N.V.
Coincheck’s listing on the Nasdaq not only marks its growth but also signals the growing acceptance of cryptocurrency exchanges in traditional finance. With a focus on international expansion, talent acquisitions, and strategic partnerships, the exchange appears ready to seize this monumental moment.
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