Japanese cryptocurrency exchange Coincheck Inc. has said it will go public in the US.
Japanese cryptocurrency exchange Coincheck Inc said on Tuesday (March 22) that it will go public in the United States by merging with blank-check firm Thunder Bridge Capital Partners IV Inc in a $1.25 billion deal.
The deal would provide the combined company with $237 million in proceeds from cash held in a Special Purpose Acquisition Company (SPAC) trust, assuming there is no redemption.
Tokyo-based Coincheck operates a marketplace to buy and sell cryptocurrencies and exchange digital assets such as non-fungible tokens. It has about 1.5 million subscribers.
The company was at the center of a $530 million digital money theft in 2018, prompting stringent regulatory scrutiny and calls for improvements to the risk management infrastructure of crypto exchanges.
It was acquired later that year by Japanese online brokerage Monex Group Inc., which then said it planned to launch an initial public offering of Coincheck.
After the merger, Monex will own approximately 82 percent of the combined company, excluding warrants and earnings. As per the deal, existing Coincheck investors are eligible to receive 50 million shares based on future stock price performance.
The combined entity, named Coincheck Group NV, will be listed on the Nasdaq under the symbol “CNCK”. The deal is expected to close in the second half of this year.
SPACs are publicly listed shell companies that IPO to raise funds to acquire a private entity at a later date.
