Japanese cryptocurrency exchange Coincheck has reported a significant revenue growth of 75% during its latest fiscal third quarter, which the company attributes to its successful merger and listing on Nasdaq.
According to their earnings report covering the period from October 1 to December 31, Coincheck’s revenue reached $782 million, an increase from $447 million in the previous quarter. However, despite this impressive growth, the company experienced a net loss of $98.1 million, largely due to administrative expenses amounting to $751 million.
Coincheck Group CEO Attributes Revenue Surge to Thunder Bridge Capital Merger
Coincheck Group’s CEO, Gary Simanson, has linked the revenue increase to the recent merger with Thunder Bridge Capital, which was finalized on December 11. This merger allowed for Coincheck’s stock to trade publicly on Nasdaq under the symbols CNCK and CNCKW. Initially proposed in March 2022, the merger facilitated a $1.25 billion de-SPAC transaction aimed at transitioning Coincheck into a publicly traded entity.
Founded in 2012, Coincheck ranks as one of Japan’s top crypto exchanges, boasting over 2.2 million verified users and a daily trading volume that approaches $120 million, based on CoinGecko’s data. The exchange notably garnered international attention in January 2018 when it suffered a security breach resulting in the theft of $534 million in NEM tokens; it has since compensated affected users and continues to pursue its public listing objectives.
Coincheck Group N.V.のNASDAQ上場のお知らせ https://t.co/2kEZo6JCBq — Coincheck(コインチェック) (@coincheckjp) December 10, 2024
Targeting an initial public offering in 2023, Coincheck confirmed its plans for a Nasdaq listing in October 2022, aiming for a launch in July 2023. However, subsequent adjustments to their merger agreement have postponed this goal to 2024.
The U.S. Securities and Exchange Commission approved Coincheck’s Nasdaq listing in early November, facilitating further progress for the company. The merger with Thunder Bridge ultimately generated about $31.6 million in gross proceeds, marking a significant achievement in Coincheck’s growth strategy.
Japan Considers Approving Bitcoin ETFs
Recent reports suggest that Japan’s Financial Services Agency (FSA) is contemplating the approval of Bitcoin spot exchange-traded funds (ETFs) and may acting sooner rather than later.
Additionally, Japan is reviewing the classification of cryptocurrencies, currently defined as payment instruments under the Payment Services Act (PSA), potentially reclassifying them under the Financial Instruments and Exchange Act (FIEA) in the future, reflecting the increasing adoption of digital assets within the country.
