Coincheck 2.0? Shares Spike In Tokyo-Based Brokerage Amid Acquisition Rumours
Indeed, the share price of Monex Group spiked some 23 percent during Tuesday’s trading hours on the Tokyo Stock Exchange. This spike was enough to see the Japanese online brokerage record a 52-week high, as millions ($USD) were added to its market cap.
Prompting Tuesday’s price movement was an announcement released by Monex around lunchtime (JST). This statement was an official response to a news article published earlier on Tuesday by one of Japan’s largest news agencies, Nikkei; prompting wild conjecture after having suggested that Monex Group would soon make a splash in the domestic cryptocurrency space by acquiring Coincheck, the infamous crypto exchange that closed earlier this year after hackers stole a whopping ~US$534 million worth of NEM (XEM).
In Tuesday’s announcement, Monex assured investors that these reports were false, insofar as they had never formerly mentioned an alleged acquisition of the bankrupt Japanese digital currency trading platform.
What sent the stock price into a frenzy, however, was what followed. Indeed, the source cited by Nikkei staff writers must’ve been extremely close to inner conversations re: the proposed acquisition, for their article turned out to be almost entirely accurate, with Monex adding to their announcement that,
it is true that we have been considering the acquisition of the cryptocurrency firm mentioned [i.e., Coincheck] in the report today but have not made any decision yet.”
Oddly enough, it was nearly on the very day of the Coincheck cyberattack when a subsidiary of Monex Group set up the ‘Monex Cryptocurrency Laboratory’. This was created to allow the Tokyo-based corporation to study and experiment with blockchain technology and cryptocurrency; helping them gauge its degree of disruptive potential.
Whilst the original article has since been edited, it still goes into detail about the specificities surrounding the possible Coincheck acquisition; far more than what Monex provided on Tuesday. For example, Nikkei is still reporting that sources have told them that the Japanese online brokerage is “offering several billion yen for a majority stake” in Coincheck, with the intention of installing their own management team to resurrect the disgraced crypto exchange.
So imminent is this alleged acquisition, that Nikkei’s sources claim “the deal could be announced as early as this week,” and that all that is standing in their way is approval from Japan’s market regulator (and crypto watchdog), the FSA.
Given Monex’s classification as a publicly-owned entity, the acquisition would need shareholder approval. This would appear nothing more than a formality, however, given the overwhelming support seen on the Tokyo Stock Exchange on Tuesday which, as Binance CEO Changpeng Zhao rightly pointed out, was all “just on the news of a “likely” acquisition of a crypto exchange;” a clear indication that the hype surrounding cryptocurrency is far from subsiding, despite the bearish market conditions.
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