Coincheck to List on NASDAQ

Coincheck, the second-largest cryptocurrency exchange in Japan, is set to list on NASDAQ on Wednesday, according to a company representative from The Block. This move comes through a merger with Thunder Bridge Capital, marking it as the second cryptocurrency exchange to go public in the U.S.

In May, both companies filed their final F-4 form with the U.S. Securities and Exchange Commission (SEC) after months of necessary revisions for foreign entities looking to list.

Coincheck started its public listing process in 2022 through a de-SPAC merger, which valued the exchange at $1.25 billion. However, this process faced delays due to increased disclosure requirements for SPAC listings this year.

This decision to go public occurs during a growth period for the crypto industry, as rising bitcoin prices capture the attention of both traders and institutional investors.

Coincheck stated that going public “will allow us to gain exposure to international investors and utilize Nasdaq-listed shares for talent acquisition and global expansions of our crypto asset business.”

The initial implied market capitalization post-listing is expected to be around $1.3 billion, according to Monex, Coincheck’s holding company.

De-SPAC deals involve a private company merging with a Special Purpose Acquisition Company (SPAC), which raises funds via an IPO specifically to acquire a public-preparing firm.

Thunder Bridge IV raised $230 million in its June 2021 IPO. Post-merger, the new entity will be called Coincheck Group N.V. and will trade under the ticker CNCK; Oki Matsumoto will be the executive chairman.

The SEC approved the registration document in November, permitting shareholders to vote on the merger last week.

Monex Group, which operates Coincheck as a subsidiary after acquiring it for 3.6 billion yen ($33.6 million), is also involved in this process. Advisors for Thunder in the de-SPAC deal include Galaxy Digital, Barclays Capital, and Cantor Fitzgerald & Co., while Monex has enlisted J.P. Morgan Securities as its sole financial advisor.

In 2018, Coincheck faced the biggest hack in crypto exchange history, resulting in the loss of $530 million in NEM tokens. Despite the breach, it managed to reimburse all 260,000 affected users using its own funds.

Coinbase, the largest crypto company to go public, made its NASDAQ debut in 2021 through a direct stock listing, and Bakkt also followed suit that year via a SPAC merger.