[NEWS] Monex announces third quarter financial results: Coincheck and other cryptocurrency-related businesses turn a profit

Monex Group announced its third quarter financial results for the fiscal year ending March 2024 on the 31st of last month. In the report, the company revealed that its cryptocurrency (virtual currency) business has turned a profit, and that its consolidated quarterly profit is progressing smoothly with 2.28 billion yen. The group as a whole had operating revenue of 62.3 billion yen, and net profit increased 238% year-on-year to 6.54 billion yen.

According to Monex, the successful cost structure reform and the recovery of the cryptocurrency market led to a complete profit for the quarter and the full year.

The recovery of the cryptocurrency market was largely due to expectations for the approval of Bitcoin spot ETFs in the United States. The domestic cryptocurrency exchange Coincheck, which is operated as Monex's cryptocurrency business, also saw an increase in trading volume, which was one of the factors that led to the profit.

The quarterly profit was 400 million yen, and the company achieved a cumulative profit for the current period. Operating revenue after deducting financial expenses and cost of sales achieved +56.0% compared to the previous quarter. It explains that a significant cut in advertising and promotion expenses by 65% ​​was also a factor in the increase in profit. Although NFT-related revenues decreased, cryptocurrency trading volume recovered to almost the same level as the same period last year.

Monex also announced in December last year that it would acquire and make a subsidiary of Canadian cryptocurrency management company 3iQ Digital Holdings Inc. The company said it plans to capture demand from global institutional investors and exchanges, which are expected to increase in the future.

3iQ has listed Bitcoin (BTC) and Ethereum (ETH) ETFs on the Toronto Stock Exchange and provides an investment platform that enables diversified investment in cryptocurrency funds. As of the end of December 2023, the company's managed assets are said to be 854 million Canadian dollars (approximately 93.8 billion yen).

The company plans to maximize synergies between group companies by utilizing 3iQ's cryptocurrency-related product composition capabilities. It appears that it made the company a subsidiary in anticipation of the creation of Bitcoin futures ETFs and spot ETFs in Japan in the future.

Coincheck is involved in the cryptocurrency business and is handling "Coincheck INO," the first NFT collection to be sold. As the second case, professional soccer club "Cerezo Osaka" started handling the club's official NFT "CEREZO OSAKA SUPPORTERS NFT", which has become popular as a support tool for sports supporters and is beginning to be used.

Continuing to aim for Nasdaq listing

In addition, Coincheck Group is currently aiming for a SPAC listing on the Nasdaq market through a merger with Thunder Bridge Capital Partners IV, Inc. (THCP), which is listed on Nasdaq. After THCP's general shareholders' meeting, the BCA agreement was extended last year until July of this year.

Monex says that by listing Coincheck Group on Nasdaq, it will be able to gain exposure to global investors. It aims to further expand its cryptocurrency business through the listing.

Reference:Financial statements
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