Coincheck Group (CNCK) Registration Filing summary

Company overview and business model

• Operates one of Japan’s largest multi-cryptocurrency marketplaces and exchanges, regulated by the JFSA, with a focus on retail investors and a growing product suite including NFTs and IEOs.

• As of December 31, 2024, had approximately 2.2 million verified accounts, representing 18.6% of Japanese crypto users, with 51% under age 40.

• Revenue is primarily derived from trading on the Marketplace platform, supporting 31 cryptocurrencies as of December 31, 2024.

• The business model includes a smartphone-centric user experience, robust KYC/AML compliance, and continuous investment in technology and security.

• Recent expansion includes the acquisition of Next Finance Tech Co., a blockchain infrastructure company, and the launch of new NFT and Web3 services.

Financial performance and metrics

• For the year ended March 31, 2024, total revenue was ¥224,049 million, up 26.6% from ¥176,924 million in 2023, with net profit of ¥1,967 million compared to a net loss of ¥559 million in 2023.

• For the nine months ended December 31, 2024, total revenue was ¥268,751 million, with a net loss of ¥14,992 million, primarily due to listing and professional fees related to the business combination.

• EBITDA for the year ended March 31, 2024 was ¥3,525 million, and adjusted EBITDA for the nine months ended December 31, 2024 was ¥4,031 million.

• Customer assets (IFRS) grew to ¥1,096 billion as of December 31, 2024, up from ¥708 billion as of March 31, 2024.

• Marketplace trading volume for the nine months ended December 31, 2024 was ¥245.6 billion.

Use of proceeds and capital allocation

• The company will not receive proceeds from the resale of shares by selling securityholders; proceeds from warrant exercises (if any) would be used for general corporate purposes.

• As of December 31, 2024, cash and cash equivalents were ¥12,673 million, with additional liquidity from credit lines and crypto asset borrowings.

• Capital allocation focuses on technology investment, customer acquisition, and potential M&A.