"Bitcoin plunge hits hard…Winklevoss twins’ Gemini faces a litmus test with restructuring and a business pivot"
Summary
- After Bitcoin’s sharp drop, Gemini reportedly moved to cut up to 25% of its workforce and exit the U.K., EU, and Australian markets.
- Gemini’s share price reportedly fell more than 80% from its post-listing peak, and its market capitalization shrank from $4 billion to less than $700 million.
- Gemini is attempting to pivot toward a prediction-market platform, but with net revenue growth of 17% and total costs projected at $530 million, concerns are being raised about the pace of cash burn.
Reports say crypto (virtual-asset) exchange Gemini is at a critical turning point, launching a sweeping restructuring and business overhaul in the wake of Bitcoin (BTC)’s sharp drop.
According to Bloomberg on the 22nd (local time), Gemini—founded by brothers Cameron and Tyler Winklevoss—carried out job cuts and withdrew from overseas operations as Bitcoin fell more than 40% and the bear market took hold. The company plans to cut up to 25% of its workforce and exit the U.K., European Union (EU), and Australian markets.
In addition, the chief operating officer (COO), chief financial officer (CFO), and chief legal officer (CLO) stepped down simultaneously in a single day. Gemini shares have fallen more than 80% from their post-listing peak, and its market capitalization has shrunk from about $4 billion to less than $700 million.
Bloomberg reported that Gemini pursued an expansion strategy premised on a Bitcoin bull market lasting through 2027, but a sharper-than-expected market selloff has thrown its growth plans off course. Total costs in 2025 rose about 70% year over year, while net revenue growth was limited to 17%.
Its global spot-trading share is also declining. Gemini’s share of global spot trading in January this year was 0.1%, down further from 0.6% in June last year.
As a result, Gemini is said to be attempting to retool its business structure by placing greater emphasis on a prediction-market platform. After securing a U.S. Commodity Futures Trading Commission (CFTC) license in December last year, the company launched related services. However, cumulative trading volume to date stands at about $24 million, and its scale is assessed as limited versus competitors.
Earlier, Gemini raised about $425 million through an IPO, but concerns are also being raised about the pace of cash burn as projected 2025 net revenue is at most $175 million, while total costs are expected to reach as much as $530 million.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
