Coincheck, Japan’s second-largest cryptocurrency exchange, is poised to make its public debut on the Nasdaq stock exchange this Wednesday. This significant milestone follows a successful merger with special purpose acquisition company (SPAC) Thunder Bridge Capital, resulting in an initial implied market capitalization of approximately $1.3 billion.
Coincheck’s listing marks a pivotal moment for the cryptocurrency industry, making it only the second crypto exchange to go public in the United States. This strategic move reflects Coincheck’s ambition to expand its global presence and attract international investors. The Nasdaq listing also provides the exchange with a powerful tool for talent acquisition and potential global acquisitions, leveraging the prestige and visibility of being a publicly traded company. The newly formed entity will operate under the name Coincheck Group N.V. and trade under the ticker symbol CNCK.
The journey to this public listing began in 2022, with an initial valuation target of $1.25 billion. However, the process encountered delays due to increased regulatory scrutiny and stricter disclosure requirements for SPAC listings introduced earlier this year. The companies diligently addressed these requirements, culminating in the submission of their final F-4 form to the U.S. Securities and Exchange Commission (SEC) in May. Following a thorough review, the SEC granted its approval for the merger’s registration document in November, clearing the path for shareholder voting and the subsequent listing.
Thunder Bridge IV, the SPAC facilitating this transaction, initially raised $230 million in an IPO conducted in June 2021. The merger deal received substantial financial advisory support from prominent institutions, including Galaxy Digital, Barclays Capital, and Cantor Fitzgerald & Co. Monex Group, which acquired Coincheck in 2018 for 3.6 billion yen ($33.6 million), enlisted J.P. Morgan Securities as its financial advisor for the transaction.
Coincheck’s history includes a significant security breach in 2018, resulting in the loss of $530 million worth of NEM tokens. This incident prompted the exchange to strengthen its security measures, implement stricter Know Your Customer (KYC) protocols, and enhance its reporting requirements. Coincheck fully reimbursed all affected users following the breach. This experience underscores the evolving regulatory landscape and the importance of robust security measures in the cryptocurrency industry.
This Nasdaq listing signals a new chapter for Coincheck, positioning it for growth and expansion on the global stage. The move also highlights the increasing maturity and mainstream acceptance of the cryptocurrency market. By accessing the public markets, Coincheck gains a significant advantage in pursuing its long-term strategic objectives and solidifying its position as a leading player in the global cryptocurrency landscape.
