Major Japanese trading platform Coincheck becomes second crypto exchange to go public on Nasdaq

Reported by The Block: Coincheck, the second-largest cryptocurrency exchange in Japan, is listing on NASDAQ via a de-SPAC transaction on Wednesday.
The combined firm will have an initial implied market capitalization of approximately $1.3 billion.

Coincheck, the second-largest cryptocurrency exchange in Japan, is listing on NASDAQ on Wednesday, a company representative told The Block. The firm is merging with Thunder Bridge Capital to become the second crypto exchange to go public in the U.S.

In May, the companies filed their final F-4 form with the U.S. Securities and Exchange Commission after months of revising the document needed for foreign companies to list on an exchange in the U.S.

Coincheck reportedly began working on its public listing in 2022 through a de-SPAC merger deal that valued the exchange at $1.25 billion. However, the process was reportedly delayed after increased disclosure requirements for SPAC listings earlier this year.

The move comes amid a period of growth for the crypto industry, as the rocketing price of bitcoin once again attracts the attention of traders and institutional capital.

Going public “will enable us to gain exposure to international investors and to utilize Nasdaq-listed shares as effective currency for recruiting talent and making global acquisitions, thereby further expanding our crypto asset business,” Coincheck said in a statement in November.

The Nasdaq-traded firm has an expected initial implied market capitalization of approximately $1.3 billion, according to data provided by Coincheck’s holding company Monex.

De-SPACs, as the name implies, are when a private company merges with a so-called Special Purpose Acquisition Company. A SPAC is a shell company that raises funds through an initial public offering for the sole purpose of acquiring a firm looking to go public.

Thunder Bridge IV raised $230 million in a June 2021 IPO. Post-merger, the combined company will be named Coincheck Group N.V. and trade on the Nasdaq under the ticker CNCK. Oki Matsumoto will serve as executive chairman.

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

Japanese online brokerage firm Monex Group acquired Coincheck for 3.6 billion yen ($33.6 million) and still operates it as a subsidiary of the firm.

Galaxy Digital, Barclays Capital and Cantor Fitzgerald & Co., among other firms, are advising Thunder on the de-SPAC deal, while Monex has tapped J.P. Morgan Securities as its sole financial advisor.

In 2018, Coincheck suffered what was, at the time, the largest crypto exchange hack that led to the implementation of stricter KYC and reporting requirements in Japan. Although the exchange lost $530 million worth of NEM tokens, it was able to repay all 260,000 impacted users using its own capital.

Coinbase, the largest crypto company to go public, listed on Nasdaq in 2021 via a direct stock listing. That same year, crypto services provider Bakkt went public via a SPAC merger.