Japan’s CoinCheck goes public in Q2 2022 with a listing on NASDAQ under the ticker CNCK. The company will use a different process than the Initial Public Offering (IPO) to complete the deal. Let’s find out.
CoinCheck goes public
Japanese cryptocurrency exchange CoinCheck is about to go public. It will be listed on the NASDAQ in the second quarter of this year under the symbol CNCK
Thunder Bridge Capital Partners Ⅳ, Inc.との統合によるNASDAQ上場子会社への移行についてhttps://t.co/okAq9uWQIU
– Coincheck(コインチェック) (@coincheckjp) March 22, 2022
The transaction is expected to add $237 million to its cash position. CoinCheck enjoys popularity in Japan with 1.5 million users having completed a Know Your Customer (KYC) process.
In 2018, the company had experienced turmoil following a hack worth $530 million in Nem tokens (XEM). This event led to a buyout of the platform by Monex Group Inc, a major Japanese financial company, which was then considering an IPO.
Coincheck is going public. Let’s check it out! https://t.co/ynv7ck2IDe
– juliecbills.eth (@juliecbills) March 23, 2022
A NASDAQ listing without an Initial Public Offering (IPO)
Interestingly, CoinCheck will not go through the traditional IPO process. This process is usually long and costly, so some companies choose to merge with a Special purpose acquisition company (SPAC).
SPACs are companies without any commercial activity. They are listed on the stock exchange beforehand, with the sole purpose of acquiring another company, which has expertise.
The SPAC that will merge with CoinCheck is called Thunder Bridge Capital Partners IV, Inc. and it will create Coincheck Group, NV in a $1.25 billion merger.
While it is not common for a cryptocurrency-related company to turn to the stock market to raise capital, it is not unheard of. Let’s remember Coinbase last year, which did things in a more traditional way with an IPO.
After opening at $381, the price subsequently collapsed to $187 at the time of writing. It remains to be seen whether CoinCheck, which is far less well known than its American counterpart, will be able to do better. Thunder Bridge (THCP), which it will merge with, is currently trading at $9.8 per share.
