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Coincheck Group’s upcoming debut on Nasdaq represents a significant step for the cryptocurrency exchange industry, marking a notable merger milestone.
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By completing the $1.3 billion merger with Thunder Bridge Capital, Coincheck aims to enhance its visibility and expansion within the global market.
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According to Coincheck’s executive chairman Oki Matsumoto, this merger is a testament to leveraging strengths from both Japan and the US capital markets.
Coincheck Group set to debut on Nasdaq on Dec. 11 after a $1.3 billion merger with Thunder Bridge Capital, marking a pivotal moment for crypto exchanges.
Coincheck’s Journey Towards Going Public
Founded in 2012, Coincheck has steadily emerged as one of Japan’s largest cryptocurrency exchanges, boasting approximately 1.5 million verified customers and a daily trading volume of around $165 million as of 2022. Historically significant, Coincheck gained notoriety following a major hack in January 2018, resulting in the theft of $534 million worth of NEM (XEM) tokens. This incident, however, did not deter the exchange’s operations; instead, Coincheck diligently repaid its customers and worked towards its public offering aspirations.
Coincheck’s plans to list on Nasdaq were initially confirmed in October 2022, targeting a July 2023 listing. Despite facing hurdles that necessitated a merger amendment and deadline extension in May 2023, the company remained resolute in its goals.
In early November, the approval from the U.S. Securities and Exchange Commission marked a critical milestone, clearing the path for Coincheck’s anticipated Nasdaq listing.
Pivotal Merger with Thunder Bridge Capital
The merger with Thunder Bridge, originally envisioned as a $1.25 billion de-SPAC transaction, has culminated in gross proceeds of approximately $31.6 million for the unified entity. This infusion aims to bolster Coincheck’s position and capabilities within the competitive cryptocurrency landscape, particularly as global demand for digital assets continues to rise.
Fostering International Crypto Relations
Coincheck’s entry into the Nasdaq symbolizes a landmark achievement in the collaboration between Japanese business acumen and U.S. capital market expertise. Monex Group chairman and Coincheck’s executive chairman Oki Matsumoto articulated this sentiment succinctly: “Coincheck was created through the fusion of a robust business foundation built in Japan, combined with the strengths of the US capital markets.”
The merger signifies not only a financial milestone but also a robust partnership intent on evolving Coincheck into a leading player in the global crypto and Web3 sectors. Thunder Bridge IV’s president and CEO, Gary Simanson, expressed optimism, stating, “I look forward to partnering with Oki and his team to build one of the preeminent global crypto and Web3 companies in the world.”
Implications for the Future of Crypto IPOs
This merger and subsequent public listing are anticipated to pave the way for more cryptocurrency exchanges considering IPOs. As notable market players like Kraken and Circle eye potential public offerings in the coming years, Coincheck’s emergence could spark renewed interest and foster a new era of transparency and investment in the cryptocurrency domain.
Conclusion
Coincheck’s public debut on the Nasdaq not only amplifies its operational potential but also enhances the visibility of the Japanese cryptocurrency landscape on the global stage. This strategic merger with Thunder Bridge exemplifies the convergence of talent and resources, setting the foundation for future initiatives in crypto innovation. As the market evolves, Coincheck’s performance could serve as a pivotal reference point for other exchanges contemplating similar paths.
