Japanese Crypto Exchange Eyes Nasdaq Listing After US$1.25B SPAC Merger
Japanese cryptocurrency exchange Coincheck Inc has agreed to merge with Nasdaq-listed special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV in a US$1.25 billion deal.
The combined entity will list on the Nasdaq Global Select Market under the ticker “CNCK,” Thunder Bridge announced on Tuesday.
The deal would provide proceeds of US$237 million to the combined company from the cash held in Thunder Bridge’s trust, assuming there are no redemptions.
Coincheck is 94.2% owned by Japanese online brokerage Monex, which will have pro-forma ownership of about 82% of the combined company after the merger.
The Tokyo-based exchange operates a marketplace for the buying and selling of cryptocurrencies and hosts the largest NFT (non-fungible token) market in Japan. Last year, Coincheck launched Japan’s first IEO (Initial Exchange Offering) which enables blockchain assets to list on a cryptocurrency exchange.
According to data by CoinMarketCap, Coincheck has a 24-hour trading volume of just over US$100 million and a current user base of about 1.5 million customers.
Kept in check
In April 2018, Monex Group acquired Coincheck after it suffered the biggest cryptocurrency hack in history. Months earlier, 523 million NEM coins valued at about US$534 million were hacked and stolen from Coincheck accounts.
Monex Group then worked to restore faith in the hacked crypto platform and was rewarded by Japan’s Financial Services Agency with a crypto exchange license in 2019. Coincheck now uses a secure cold storage wallet to reserve bitcoins offline to protect their client’s assets from hacking.