Coincheck Stock Takes a Hit: What’s Behind the $98 Million Loss?

Coincheck’s stock plunged 7% following its latest financial report, revealing a staggering $98 million loss for the third quarter. Though the stock has since rebounded, the report raises pressing questions about the exchange’s financial health and future trajectory.

The Costly Nasdaq Dream

CEO Gary Simanson attributed the loss primarily to the massive expenses tied to its merger with Thunder Bridge Capital and the subsequent Nasdaq listing in November. The company disclosed that over $751 million was spent on sales, administrative costs, and other merger-related expenses.

The timing couldn’t have been worse. The report arrived amidst a volatile crypto market, with overall market value slipping 1% and trading volumes on centralized exchanges dropping 15%. Despite these headwinds, Coincheck remains one of only two crypto exchanges listed on Nasdaq, alongside Coinbase. Other big names, such as stablecoin issuer Circle and Kraken, are reportedly exploring IPOs, betting on an improving regulatory landscape in the U.S.

A Silver Lining?

Despite the alarming net loss, Coincheck posted an impressive 75% revenue growth from the previous quarter, reaching $785 million. In contrast, Coinbase, its Nasdaq-listed counterpart, saw revenue decline by 27% over the same period. The exchange also reported an uptick in trading activity, with volume surging to $351 million and customer assets on the platform climbing to $6.9 billion.

However, the stock’s performance tells a different story. Since its Nasdaq debut, Coincheck’s shares have plummeted over 30%, making investors wary. Meanwhile, other crypto-linked stocks have fared better, with Coinbase and MicroStrategy gaining 6% and 8%, respectively, in 2025.

BitGalactic’s Take: Lessons from History

The crypto world hasn’t forgotten Coincheck’s infamous 2018 hack, when attackers made off with $532 million in Nem tokens. While the company reimbursed affected customers, the incident left a lasting scar on its reputation. Today’s struggles could indicate deeper operational challenges beyond just merger costs.

From a broader market perspective, BitGalactic sees Coincheck’s situation as a cautionary tale for crypto firms eyeing public listings. High operational costs, regulatory scrutiny, and market volatility make it a tough road. The real question: Can Coincheck capitalize on its revenue growth and rebuild investor confidence, or will it follow the fate of other overextended crypto ventures?