Coincheck this week became the 10th cryptocurrency firm to agree to a reverse merger with a special purpose acquisition company (SPAC) since last year, while stablecoin platform Circle and mining firms BitFuFu and Bitdeer hope to go public this year, according to a Bloomberg report.
“Often you can’t gauge the success of these deals through to completion because they’re going to trade at least close to their in-trust cash value before the shareholder vote,” said company CEO Kristi Marvin. researcher SPACIsder, in the Bloomberg report Wednesday, March 23.
“The best way to gauge their performance is after the deal closes,” she said.
Three crypto firms bucked the trend of recent dismal SPAC performance: Core Scientific Inc., one of North America’s largest Bitcoin miners, Bakkt Holdings Inc. (up 43% over the past two months) and Cipher Mining Inc. (11%) .
The De-SPAC index, a group of 25 companies including SoFi Technologies and WeWork, launched after a blank check deal, fell 9%. Core Scientific is the only crypto firm in the index.
Cipher and Bakkt are trading below where they started when they signed up after their respective SPAC deals, according to the report.
Related: Japanese Crypto Exchange Coincheck Forecasts $1.3 Billion SPAC
Japanese cryptocurrency exchange Coincheck will go public on the Nasdaq through a $1.3 billion SPAC merger. Coincheck expects to complete the merger with Thunder Bridge Capital Partners IV in the second half of the year, receiving $240 million in cash from the deal, according to Bloomberg.
The exchange, owned by Monex, has about 1.5 million verified customers, according to the report. Following the SPAC merger, Monex will retain a majority stake in the new company, owning 82% of the combined organization compared to the 94% it currently owns.
Coincheck fell victim to one of the biggest crypto hacks in history in 2018, when cybercriminals broke into the exchange, stealing around $500 million worth of XEM, the native coin of the New Economy Movement blockchain project or NEM, according to the report.