Feb 13, 2025

Japanese Crypto Exchange Coincheck Reports 75% Revenue Growth in Q3

Japanese cryptocurrency exchange Coincheck has reported a 75% surge in revenue for its fiscal third quarter, marking a significant milestone for the company as it navigates expansion and increased market activity. The growth has been largely attributed to its merger with Thunder Bridge Capital and subsequent Nasdaq listing, signaling growing institutional interest in Japan’s expanding crypto ecosystem.

Coincheck

Q3 Earnings Breakdown: Strong Revenue but Net Loss

“Coincheck just shocked the crypto world with a massive 75% revenue surge—despite reporting a $98 million loss. So, what’s driving this paradox?”

According to Coincheck’s earnings report, the company generated $782 million in revenue for the quarter spanning October 1 to December 31, up from $447 million in Q2. This substantial revenue increase coincided with a 72% rise in customer assets, reinforcing the exchange’s position as a leading crypto trading platform in Japan.

However, despite the impressive revenue boost, Coincheck reported a net loss of $98.1 million, largely attributed to $751 million in sales expenses and administrative costs. The loss underscores the challenges of scaling operations while maintaining profitability, especially in the competitive and highly regulated Japanese crypto market.

Merger with Thunder Bridge and Nasdaq Listing Fuel Growth

Gary Simanson, CEO of Coincheck Group, pointed to the company’s successful merger with blank check firm Thunder Bridge Capital as a key driver of growth. The merger, which was finalized on December 11, paved the way for Coincheck to become a publicly traded company on the Nasdaq stock exchange under the ticker symbols CNCK and CNCKW.

The deal, first disclosed in March 2022, was structured as a $1.25 billion de-SPAC transaction, allowing Coincheck to bypass the traditional IPO route. After multiple delays, the U.S. Securities and Exchange Commission (SEC) approved the listing in early November 2023, with the merger ultimately generating $31.6 million in gross proceeds.

Coincheck’s Market Position in Japan

Founded in 2012, Coincheck is one of the largest crypto exchanges in Japan, boasting 2.2 million verified users as of December 2023. It ranks 66th globally in terms of daily trading volume, processing approximately $120 million in transactions per day, according to CoinGecko data.

The exchange is perhaps best known internationally for the infamous 2018 hack, in which $534 million worth of NEM tokens were stolen—one of the largest security breaches in crypto history. Following the incident, Coincheck reimbursed affected users and implemented stricter security measures, enabling it to regain market trust and continue growing its business.

The Growing Crypto Market in Japan

Japan remains a crucial player in the global crypto economy, known for its progressive regulatory framework that balances consumer protection with innovation. The country’s Financial Services Agency (FSA) has actively shaped crypto regulations, making Japan one of the safest environments for digital asset trading.

With Coincheck now publicly listed in the U.S., its expansion could strengthen Japan’s position as a global crypto hub. The exchange’s ability to attract institutional investors and maintain regulatory compliance will be key factors in determining its long-term success.

What’s Next for Coincheck?

Looking ahead, Coincheck aims to expand its market presence and further capitalize on its Nasdaq listing to secure additional funding and strategic partnerships. While profitability remains a challenge, the company’s rapid revenue growth suggests strong potential for long-term sustainability in Japan’s evolving crypto landscape.

As crypto adoption accelerates in Japan, will Coincheck’s Nasdaq listing be the catalyst that propels it to the global stage—or will regulatory hurdles slow its momentum?

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