Coincheck Inc., a Japan-based cryptocurrency exchange with over 1.5 million approved customers, is considering listing on Nasdaq following the merger of Specialized Acquisition (SPAC) with Thunder Bridge Capital Partners IV, Inc.
The combined holding company will be known as Coincheck Group, N.V. Following the agreement, it is expected to be listed on the NASDAQ under the ticker symbol CNCK by the second quarter of 2022.
SPACs are publicly listed companies that do not do business. They sell their shares to the public in order to obtain funding in the future to buy a private company.
The merger agreement is reportedly valued at $1.25 billion for 125 million shares, and upon completion, the holding company will collectively receive $237 million in cash in the Thunder Bridge IV fund. The agreement was approved by the board of directors of Coincheck, the parent company of Monex Group, Inc., and Thunder Bridge IV for Coincheck.
Coincheck and Thunder Bridge did not respond to requests for comment from Cointelegraph at press time.
Following a data breach in 2018, Monex Group acquired cryptocurrency platform Coincheck for $33.5 million, and the new combined assets will serve as a subsidiary of the parent crypto exchange. Monex Group Inc. Currently owns 94.2% of Coincheck and will hold all shares at the time of closing. The parent company is expected to own 82 percent of the combined company.
Related: Japanese crypto exchange seeks to recover currency records: report
Coincheck will not be the first company to consider a public listing as a result of the SPAC merger, in fact in 2021 several crypto service providers and mining companies received a SPAC merger agreement. Bakkt went public with SPAC, while the $3.3 billion mining company selected several other companies for the SPAC merger.
Many market experts argue 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 funding, greater security, and lower regulatory requirements than traditional IPOs.