Although Gemini, the cryptocurrency exchange co-founded by Cameron and Tyler Winklevoss, is preparing for its initial public offering (IPO) on Nasdaq under the ticker GEMI, the filing reveals significant financial challenges, including a net loss of $282.5 million in the first half of 2025 and a sharp decline in revenue compared to the previous year. This loss represents a considerable increase from the $158.5 million deficit reported in 2024, while revenue fell to $67.9 million in the first half of 2025 from $142.2 million in 2024. The company also disclosed an adjusted EBITDA loss of $113.5 million for the same period, a sharp reversal from a $32 million profit the previous year, signaling mounting financial pressure amid an evolving market landscape. Despite these setbacks, Gemini has secured a $75 million credit line with Ripple, extendable to $150 million, denominated in Ripple’s RLUSD stablecoin, demonstrating efforts to diversify beyond trading. Options trading, especially with altcoins, involves high volatility and risk which could impact Gemini’s financial strategies.
Gemini’s IPO filing, initially submitted confidentially in February 2025 and publicly disclosed in August 2025, is timed to capitalize on a broader crypto market resurgence and greater institutional interest in digital assets. Despite its financial setbacks, Gemini aims to raise approximately $400 million through this offering, although specific pricing details remain undisclosed. The exchange operates within a regulatory environment that has recently become more favorable, benefiting from the pro-crypto stance of the Trump administration and legislation such as the GENIUS Act, which clarified stablecoin regulations. Additionally, the U.S. Securities and Exchange Commission has relaxed enforcement actions against crypto firms since 2024, improving the outlook for public offerings like Gemini’s. Gemini’s strategy also includes a dual-entity structure to navigate complex state regulations effectively. Their platform’s compliance measures align with industry standards designed to mitigate counterparty risks prevalent in crypto trading environments.
The company offers a regulated crypto exchange and custody services, including blockchain-based products like the Gemini Dollar stablecoin and a crypto rewards credit card, servicing over 523,000 monthly users and 10,000 institutions worldwide. Gemini manages approximately $18 billion in crypto assets under custody and supports spot and derivatives trading, staking, and over-the-counter options. Its corporate structure is split between Gemini Trust in New York and Moonbase in Florida to comply with state regulations.
Gemini’s IPO structure introduces a dual-class share system, whereby Class A shares carry one vote each, and Class B shares, retained by the Winklevoss twins, hold ten votes each, ensuring the founders retain controlling interest. This governance model, common among tech and crypto firms, designates Gemini as a “controlled company” under Nasdaq rules, preserving founder influence despite public investment. However, the widening financial losses and shrinking liquidity present risks that may concern prospective investors, highlighting the challenges facing crypto exchanges amid market volatility and regulatory uncertainties.
