Monex Takes $67M Hit from Coincheck's Nasdaq Debut Despite Crypto Boom

Japanese financial services firm Monex Group Inc. reported a third-quarter net loss of ¥9.9 billion ($67 million), primarily due to one-time expenses related to its cryptocurrency subsidiary Coincheck's Nasdaq listing, even as its core businesses showed strong performance.

Monex Posts ¥10B Loss on Coincheck Listing Costs

The company recorded ¥17.1 billion in one-time expenses related to Coincheck Group N.V.'s December listing, including ¥13.7 billion in share-based compensation expenses and ¥3.4 billion in professional fees. Excluding these costs, the company's operational performance remained robust, driven by strong crypto trading volumes and steady brokerage revenues.

Coincheck's marketplace trading volume more than doubled to ¥245.6 billion in the quarter, reflecting broader crypto market momentum. The U.S. segment maintained steady performance with quarterly profit of ¥1.5 billion, while the Japanese operations benefited from the strategic alliance with NTT DOCOMO.

The company's total assets under custody and management reached ¥12 trillion, marking significant expansion of its business base. Monex Securities, now an equity-method affiliate following its partnership with NTT DOCOMO, saw its mutual fund balance grow to ¥1.96 trillion, up 8% from the previous quarter.

Looking ahead, Monex Group maintains its focus on achieving a 15% ROE while balancing growth investments with shareholder returns.

Dividend and Buyback

In a separate announcement, Monex declared a special year-end dividend of ¥10 per share, funded by proceeds from the sale of its Hong Kong subsidiary, Monex Boom Securities. This comes in addition to the ordinary dividend of ¥15.1 per share, bringing the total year-end dividend to ¥25.1.

The company continues to execute its ¥5 billion share buyback program announced in July 2024, having repurchased ¥2.7 billion worth of shares as of January 31, 2025. Monex maintains its target of achieving a 15% ROE while balancing growth investments with shareholder returns.

The Crypto Bet

Nearly a year ago, Monex completed the acquisition of a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management firm. This deal, first announced in December 2023, brought 3iQ and its subsidiaries under Monex's ownership.

To support 3iQ's growth, Monex invested $7.5 million in its Managed Account Platform (QMAP). This platform provides institutional investors with access to a variety of crypto hedge funds, focusing on strategies designed to meet the needs of global institutions. The investment reinforces 3iQ's position in institutional digital asset management.

Additionally, Monex has introduced a new service in partnership with Tokyo-based NTT Docomo, allowing customers to purchase mutual funds using credit cards. By integrating NTT Docomo’s d CARD, users can earn up to 1.1% back in d POINTs on their monthly mutual fund contributions. Monex expects this rewards system to encourage regular investments by offering added financial incentives.