Crypto Exchange Gemini Goes Public in the US: A Wave of Capital and a Reality of Losses

Jessy, Golden Finance

Gemini, a US-based regulated exchange, will list on the Nasdaq this week under the ticker symbol "GEMI." This marks the third US-listed cryptocurrency exchange, following Coinbase and Bullish.

According to the updated prospectus filed with the SEC on Tuesday, Gemini plans to price its shares between $24 and $26 per share, higher than its initial range of $17 to $19. The company plans to raise up to $433 million, up from its initial target of $317 million in its September 2nd filing. This also values ​​Gemini at $3 billion. In this IPO, Gemini also received a $50 million strategic investment from Nasdaq.

Gemini is not the only company on the slate of US crypto IPOs. On the same day as Gemini's IPO, lending platform Figure will also go public.

However, in stark contrast to the hype, Gemini's financial situation is far from ideal. According to the updated prospectus, Gemini's net loss for the first half of 2025 reached $282.5 million, significantly higher than the loss in the same period last year. Revenue for the same period was $68.6 million, a year-on-year decline of approximately 8%. This also reflects the two sides of the crypto IPO craze: on one hand, the capital market is enthusiastic, while on the other, the market still questions the true profitability of these companies. The twin brothers' compliance dream, benefiting from early Bitcoin investment, is a testament to Gemini's founders: Harvard twins Cameron and Tyler Winklevoss. They rose to prominence in a lawsuit with Mark Zuckerberg over Facebook's early ownership, ultimately receiving a settlement of approximately $65 million. Part of this money was later invested in Bitcoin investors, making the brothers early and substantial holders of the cryptocurrency. In 2014, they founded Gemini in New York, emphasizing compliance and security, aiming to establish a trading platform for the crypto industry recognized by the traditional financial system. Early in its existence, it obtained a trust charter from the New York Department of Financial Services and, in 2016, became one of the first US platforms to receive permission to trade Ethereum. Since its founding, Gemini has not only provided cryptocurrency trading services, but has also expanded into custody, stablecoins (GUSD), credit cards, and derivatives, particularly attracting the attention of institutional investors for its custody and compliance and risk management capabilities. The company currently holds a trust charter from the New York State Department of Financial Services. This year, it also obtained a compliance license under the EU's Markets in Crypto-Assets Act (MiCA), in addition to its previously obtained MiFID II investment firm license. These multiple licenses form the regulatory foundation for its European operations. This comprehensive suite of licenses allows Gemini to legally and compliantly provide crypto asset trading and custody services in all 27 EU member states, as well as in three European Economic Area countries: Iceland, Liechtenstein, and Norway, bringing its service coverage to 30 countries and regions.

And Gemini's financial data shows that it faces considerable challenges. The prospectus shows that in the first half of 2025, the company's net loss was approximately $282.5 million, a nearly sixfold increase from the same period last year; revenue in the same period was $68.6 million, a decrease from $74.3 million in the same period last year. Gemini's trading volume in the first half of 2025 was approximately $24.8 billion, the platform's custody assets were approximately $18.2 billion, and the number of monthly active trading users was 523,000. While these figures show that it is still a sizable exchange, there is still a significant gap compared to market leaders such as Coinbase. According to industry data, Coinbase currently holds approximately 49% of the US spot market, while Gemini's market share has peaked at approximately 3% in the past few years, but has declined in recent years. The Hot and Cold Behind the Crypto IPO Boom

Gemini's listing takes place amidst a resurgent US IPO market. With the overall strength of US stocks, tech companies are rekindling their enthusiasm for going public, and blockchain and crypto-related companies have become a new hot sector. Gemini's listing is not an isolated case. On the same day, blockchain lending platform Figure will also be listed on the New York Stock Exchange. Bullish previously completed its IPO in August, with its stock price doubling on its first day, valuing it at over $13 billion. Coinbase's listing on the Nasdaq in 2021 further propelled crypto assets into the mainstream financial market, with its market capitalization exceeding $100 billion on its first day, and it remains a bellwether for the industry. However, the road to capital markets for crypto companies has not been smooth. Although Coinbase achieved nearly $6.6 billion in revenue and nearly $2.6 billion in net profit in 2024, its stock price has experienced significant fluctuations, demonstrating its fragility and the profound impact of regulatory policies on its price performance. Bullish's valuation was staggering at its IPO, but it remains unprofitable. Gemini's financial data also suggests its performance is closer to the latter.

Gemini's increased fundraising target reflects continued investor interest in crypto infrastructure companies, but the financial reality of its losses also raises concerns about its long-term profitability path. Crypto exchanges face high compliance costs and fierce competition, making long-term growth a challenge.

Whether Gemini can establish a firm foothold in the capital markets like Coinbase will likely depend on several key variables: first, whether it can continue to attract institutional clients and expand its trading and custody businesses; second, whether it can achieve revenue growth through regulatory breakthroughs in the European market; and third, whether it can maintain stability amid regulatory jockeying and market volatility.

For investors, judging Gemini's long-term investment value also requires considering its performance over the next few financial reporting cycles.