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Gemini Stock Leaps After $100 Million Winklevoss Investment, Q1 Revenue Beat

The update signals a pivot toward fee-based services alongside a move into regulated markets.

Overview

  • Gemini shares jumped as much as about 30% in after-hours trading Thursday following a $100 million purchase by Winklevoss Capital paid in bitcoin at $14 per share.
  • The company reported $50.3 million in first‑quarter revenue, topping forecasts, and logged a $109 million net loss equal to 93 cents per share.
  • Growth came from non-trading lines as credit card revenue reached $14.7 million, up nearly 300% year over year, and services plus interest income rose to $24.5 million.
  • Exchange trading weakened with revenue falling 27% to $17.2 million as spot volumes slid to $6.3 billion from $13.5 billion a year earlier.
  • In April, Gemini won a CFTC Derivatives Clearing Organization license that lets it clear trades in-house, while its new prediction market has surpassed 100 million contracts from over 20,000 users but produced only about $400,000 in revenue.
  • Costs rose fast with operating expenses up 73% to $144.5 million, no formal revenue guidance was offered, and a shareholder lawsuit over IPO disclosures plus recent layoffs and executive exits kept analysts cautious.