Coincheck, one of Japan's largest cryptocurrency exchanges, has agreed to merge with Nasdaq-listed special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV.
The merger is expected to be completed in the second half of 2022, after which the combined entity will list on the Nasdaq Global Select Market under the ticker "CNCK," Thunder Bridge announced on Tuesday.
The proposed transaction is valued at about $1.25 billion.
Thunder Bridge will provide $237 million in cash, before expenses and assuming no redemptions by shareholders, to the combined company.
Coincheck is 94.2% owned by online securities company Monex, which will retain all existing entity at closing, representing ownership of around 82% in the new entity.
Upon closing, Thunder Bridge President and CEO Gary Simanson will become the CEO of the combined company.
Based in Tokyo and regulated by Japan's Financial Services Agency, Coincheck has about 1.5 million verified customers. It has 24-hour trading volume of $130 million according to data by CoinGecko.