Gemini, despite 52% surge in revenue… stock reaches lowest level

The virtual asset (cryptocurrency) exchange Gemini recorded revenue that increased 52% quarter-on-quarter in its first quarterly results since listing, yet its stock plunged 11%, hitting a record low.

On the 10th (local time), according to The Block, Gemini's Q3 net revenue was about $50 million, with trading fees of $26 million and service revenue of over $20 million. Credit card and staking services drove the revenue growth. However, the net loss was $159.5 million (loss of $6.67 per share), as stock-based compensation costs from the September IPO and marketing expenses heavily pressured profitability.

Q3 trading volume was $16.4 billion, up 45% from the previous quarter, with institutional trading rising about 50%. Gemini is expanding its entry into regulated overseas markets, including obtaining a European MiCA (crypto-asset market regulation) license in August and entering the Australian market in October.

Gemini's credit card secured more than 100,000 active accounts in this quarter alone, with spending of $350 million, double the prior quarter. Staking balances reached $741 million. As a result, service revenue accounted for nearly 40% of the total, rising sharply from below 30% a year earlier.

Despite the strong results, Gemini's stock fell more than 11% after market close, dropping below $15 and recording its lowest price since listing. The outlet said, "The market appears to be focusing on the widening IPO-related losses rather than revenue growth."