Overview
- Shares climbed more than 20% in premarket trading Friday after Gemini disclosed first‑quarter results alongside a $100 million founder-led purchase priced at $14 per share and paid in bitcoin.
- Revenue rose 42% year over year to $50.3 million, yet the company posted a $109 million net loss as operating expenses increased 73% to $144.5 million and adjusted EBITDA registered a loss of $59.9 million.
- Services and interest income reached $24.5 million to make up 49% of revenue, with credit card revenue jumping nearly 300% to $14.7 million and OTC trading improving as the firm adds institutional clients.
- Core exchange activity weakened, with spot trading revenue down 27% to $17.2 million as quarterly spot volume fell to $6.3 billion from $13.5 billion a year earlier.
- A new CFTC Derivatives Clearing Organization license in April allows Gemini to clear its own futures and options, even as the company faces a shareholder class action and must prove its strategy can curb losses.