Coincheck to List on NASDAQ

Coincheck, the second-largest cryptocurrency exchange in Japan, is set to list on NASDAQ on Wednesday, according to a representative from the company. The exchange is merging with Thunder Bridge Capital, becoming the second crypto exchange to go public in the U.S.

In May, Coincheck and Thunder Bridge filed their final F-4 form with the U.S. Securities and Exchange Commission (SEC) after months of revising the necessary documents for foreign companies looking to list on an exchange in the U.S.

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

The decision to go public comes during a growth phase for the crypto industry, as skyrocketing bitcoin prices attract the interest of traders and institutional investors. Coincheck stated, "Going public will enable us to gain exposure to international investors and use Nasdaq-listed shares for talent recruitment and global acquisitions, thereby expanding our crypto asset business."

The firm expects an initial implied market capitalization of approximately $1.3 billion after the listing, as reported by Coincheck’s holding company Monex. De-SPACs occur when a private company merges with a Special Purpose Acquisition Company (SPAC), which is a shell company created to raise funds for acquiring a public firm.

Thunder Bridge IV raised $230 million in an IPO in June 2021. Following the merger, the new company will be known as Coincheck Group N.V. and will trade on Nasdaq under the ticker symbol CNCK, with Oki Matsumoto serving as executive chairman.

The SEC approved the registration document in November, enabling shareholders to vote on the merger last week. Monex Group acquired Coincheck for 3.6 billion yen (approximately $33.6 million) and operates it as a subsidiary.

Advisors for Thunder on 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 was the victim of a hack that resulted in the loss of $530 million worth of NEM tokens, leading to stricter KYC and reporting requirements in Japan. The firm was able to reimburse all 260,000 affected users using its own funds.

Coinbase, the largest crypto company to debut publicly, listed on Nasdaq in 2021 via direct stock listing, while Bakkt went public that same year through a SPAC merger.