Coincheck Inc., a Japan-based crypto exchange with more than 1.5 million verified customers, is considering listing on Nasdaq after a special purpose acquisition company (SPAC) merger with Thunder Bridge Capital Partners IV, Inc.
The combined holding company would be called Coincheck Group, NV and is expected to list on Nasdaq after deal completion by Q2 2022 under the symbol "CNCK."
SPACs are publicly traded corporations and do not conduct business. They sell their shares to the public in order to obtain financing for the future acquisition of a private company.
The value of the merger deal is reported to be $1.25 billion for 125 million shares, and upon completion, the combined holding company will receive $237 million in cash in trust from Thunder Bridge IV. The deal has been approved by the board of directors of Coincheck, Coincheck's parent company, Monex Group, Inc. and Thunder Bridge IV.
Coincheck and Thunder Bridge did not respond to requests for comment from Cointelegraph at the time of publication.
Following a data breach in 2018, Monex Group acquired cryptocurrency exchange Coincheck for $33.5 million and the combined new holdings would act as a subsidiary of the crypto exchange's parent company. Monex Group, Inc. currently owns 94.2 percent of Coincheck and will retain all of its shares at closing. The parent company is expected to own 82 percent of the merged company.
Related: Japanese Crypto Exchanges Aim to Catch Up on Coin Listings: Report
Coincheck will not be the first company to consider a public listing through a SPAC merger; in fact, in 2021, several renowned crypto service providers and mining companies agreed to the SPAC merger deal. Bakkt went public with a SPAC while a $3.3 billion mining company chose SPAC merger along with several others.
Many market experts say that the reason for the great popularity of SPAC mergers is their clear advantages over other types of financing and liquidity. SPACs often offer higher valuations, less dilution, faster access to financing, more certainty, and fewer regulatory requirements than traditional IPOs.
Post navigation
