A Japanese financial services company, Monex Group Inc., has revealed a significant net loss of ¥9.9 billion (approximately $67 million) for the third quarter, largely attributed to extraordinary expenses from the Nasdaq listing of its cryptocurrency subsidiary, Coincheck. Despite this setback, the organization’s core operations performed impressively.
The reported losses stemmed from a total of ¥17.1 billion in one-time charges linked to Coincheck Group N.V.’s public debut in December. This figure includes ¥13.7 billion in share-based compensation as well as ¥3.4 billion in professional fees. However, aside from these exceptional costs, the company demonstrated solid operational results, thanks to heightened crypto trading volumes and stable revenue from brokerage activities.
During this quarter, trading activity on Coincheck’s marketplace soared, more than doubling to ¥245.6 billion, indicating a positive trend in the cryptocurrency market. The U.S. sector of the company exhibited consistent performance, generating a quarterly profit of ¥1.5 billion, while its operations in Japan benefitted from a strategic partnership with NTT DOCOMO.
In terms of overall growth, the company reported total assets under custody and management reaching ¥12 trillion, indicating a notable expansion of its business. Additionally, Monex Securities, now functioning as an equity-method affiliate through its partnership with NTT DOCOMO, recorded an 8% increase in its mutual fund balance, which grew to ¥1.96 trillion from the previous quarter.
Looking to the future, the organization aims to achieve a return on equity (ROE) of 15%, while also striking a balance between investment in growth initiatives and ensuring returns for shareholders.
In an additional announcement, a special year-end dividend of ¥10 per share was declared, funded through proceeds from divesting its Hong Kong subsidiary, Monex Boom Securities. This special dividend is in addition to an ordinary dividend of ¥15.1 per share, culminating in a total year-end payout of ¥25.1.
The company is also progressing with a share buyback program amounting to ¥5 billion, which was initiated in July 2024. As of January 31, 2025, it has successfully repurchased ¥2.7 billion worth of shares, further indicating its commitment to enhancing shareholder value alongside its growth strategy.
Nearly a year prior, Monex completed the acquisition of a majority interest in 3iQ Digital Holdings, a Canadian company specializing in crypto asset management. This strategic acquisition, announced in December 2023, encompassed 3iQ and its subsidiaries within the broader company framework.
To further bolster 3iQ’s expansion, a substantial investment of $7.5 million was made in its Managed Account Platform (QMAP). This platform serves institutional investors by providing access to diverse crypto hedge funds, tailored specifically to meet the demands of global institutions, thereby enhancing 3iQ’s role in managing digital assets.
Moreover, Monex has launched a novel service in collaboration with Tokyo-based NTT Docomo, allowing clients to buy mutual funds using credit cards. By utilizing NTT Docomo’s d CARD, customers can earn up to 1.1% in d POINTs on their monthly mutual fund purchases. The company anticipates that this rewards program will incentivize regular investment by adding additional financial benefits to users.
In summary, despite facing a challenging quarter marked by significant expenses from its cryptocurrency subsidiary, the financial services firm has demonstrated resilience through robust core business performance and strategic initiatives aimed at growth and shareholder value enhancement.