Investors sold off shares of crypto exchange Gemini on Monday, driving the stock to a record low in after-hours trading as the company’s first quarterly earnings since going public revealed steep losses tied to its IPO expenses.
Gemini’s third-quarter report, released Monday, marked its first as a public company. The exchange reported revenue of $50.6 million, more than double the $24.5 million posted a year earlier.
However, the company logged a net loss of $159.5 million, up from $90.1 million in the same period last year — a decline attributed mainly to higher compensation and marketing costs related to its public listing.
Shares of Gemini (GEMI) closed the day up 4% at $16.84, before plunging to $14.75 in after-hours trading. The stock later pared some losses to end the extended session down 6.2% at $15.80, marking a new all-time low.
Gemini’s stock has fallen roughly 40% since its September 12 debut at $28 per share, as the broader crypto market has struggled to maintain the momentum of its early October rally.
Gemini’s “super app” vision
The decline comes as Gemini president and co-founder Cameron Winklevoss told investors during the company’s earnings call that the exchange is doubling down on its ambition to build a crypto “super app” integrating multiple services into a single platform.
“We’re really excited about building toward the super app,” Winklevoss said. “It’s an onchain future. We’re an onchain company, and this is our wheelhouse.”
“Our view is that all markets are moving onchain,” Cameron Winklevoss said. “Soon, users will be able to hold tokenized dollars through stablecoins, tokenized equities, and digital commodities — all within a single app. We’re making strong progress toward that vision.”
Winklevoss emphasized that Gemini’s goal is to develop its own products rather than pursue partnerships or acquisitions to achieve that integration.
Prediction markets seen as the next big opportunity
Winklevoss also expressed enthusiasm for bringing prediction markets to the platform — markets that allow users to trade on the outcomes of events ranging from sports to politics.
“Prediction markets are like Bitcoin in 2012,” he said. “The idea that you can build a market around any event is fascinating — it’s a truly boundless opportunity. We’re working to launch those globally.”
“We think it’s very early days. It reminds us a lot of what Bitcoin felt like in 2012 when we first discovered it.”
Gemini confirmed that it has filed an application with the Commodity Futures Trading Commission (CFTC) to become a designated contract market, a move that would allow the exchange to launch prediction markets. The announcement follows reports earlier in the week that Gemini was preparing to enter the space.
“Once the government reopens, we plan to resume work on that application and, hopefully, bring these products to market soon after,” Winklevoss said.
