425: Coincheck Reports Preliminary Monthly Disclosure Information Ahead of Business Combination with Thunder Bridge Capital Partners IV

Coincheck, Inc. released preliminary monthly disclosure information for the fiscal year ending March 31, 2025, as part of its proposed business combination with Thunder Bridge Capital Partners IV.

Summary

• Coincheck, Inc. has released preliminary monthly disclosure information for the fiscal year ending March 31, 2025.
• The disclosure includes data from April 2024 to June 2024, covering exchange trading value, marketplace trading value, client assets, and the number of verified accounts.
• Exchange trading value decreased from ¥463,858 million in April to ¥271,697 million in June.
• Marketplace trading value also decreased from ¥28,222 million in April to ¥21,658 million in June.
• Client assets increased from ¥658,149 million in April to ¥747,889 million in June.
• The number of verified accounts increased from 2,014,832 in April to 2,060,379 in June.
• The information is preliminary and may be updated in the future.
• The release is related to the proposed business combination between Coincheck and Thunder Bridge Capital Partners IV, Inc.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While client assets and verified accounts increased, trading volumes decreased. The document also contains cautionary language regarding risks and uncertainties associated with the business combination and the cryptocurrency market.

Positives

• Client assets have increased from ¥658,149 million to ¥747,889 million between April and June 2024.
• The number of verified accounts has increased from 2,014,832 to 2,060,379 between April and June 2024.

Negatives

• Exchange trading value decreased from ¥463,858 million in April 2024 to ¥271,697 million in June 2024.
• Marketplace trading value decreased from ¥28,222 million in April 2024 to ¥21,658 million in June 2024.

Risks

• The business combination with Thunder Bridge Capital Partners IV is subject to closing conditions, including shareholder approval and meeting Nasdaq listing standards.
• Failure to complete the business combination could negatively impact Coincheck's plans.
• Changes in cryptocurrency and digital asset markets could affect Coincheck's performance.
• The ongoing COVID-19 pandemic and related responses pose risks to Coincheck's operations.
• Coincheck may face challenges in developing and maintaining effective internal controls.

Future Outlook

The document contains forward-looking statements regarding future financial and operating results, plans, objectives, expectations, and intentions with respect to future operations, products, and services, including the proposed business combination between Thunder Bridge IV and Coincheck.

Industry Context

This announcement comes as cryptocurrency exchanges and related businesses are facing increased scrutiny and volatility in the digital asset markets. The proposed business combination with a SPAC like Thunder Bridge Capital Partners IV is a common route for these companies to access public markets.

Comparison to Industry Standards

• It is difficult to compare Coincheck's results directly to global benchmarks without knowing the specific metrics used by other exchanges.
• Companies like Coinbase, Binance, and Kraken are major players in the cryptocurrency exchange market, but their reporting practices may differ.
• The reported client asset growth is a positive sign, but the decline in trading volume could be a concern compared to industry trends.

Stakeholder Impact

• Shareholders of Thunder Bridge IV will vote on the proposed business combination.
• The business combination could impact Coincheck's employees, customers, and suppliers.

Next Steps

• Thunder Bridge IV will mail the definitive proxy statement/prospectus and a proxy card to each shareholder entitled to vote at the meeting relating to the approval of the business combination.
• Investors and stockholders of Thunder Bridge IV are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available.

Key Dates