Gemini Q1 Revenue Jumps 42% as Prediction-Market Trades Top 100 Million

Crypto exchange Gemini reported a 42% increase in first-quarter revenue from a year earlier and disclosed initial operating metrics for its in-house prediction market platform, helping send its shares sharply higher in after-hours trading.

The Block reported on May 14 that Gemini posted first-quarter revenue of $50.3 million, up from $35.3 million a year earlier.

Gemini shares rose as much as 30% in after-hours trading after the results were released.

The company said growth in its over-the-counter trading business, crypto-linked credit card business and services segment drove the revenue increase.

Gemini also disclosed performance data for its prediction market platform for the first time. The platform, launched in December, has generated about $400,000 in revenue to date. Total contract trades have surpassed 100 million, and the platform has attracted more than 20,000 users.

The business is still smaller than major prediction-market platforms including Polymarket and Kalshi. Gemini said trading volume last month rose another 78% from the previous month.

Chief Executive Officer Tyler Winklevoss said Gemini had achieved key product and regulatory milestones as it evolves from a crypto company into a broader financial-markets firm.

Gemini has also stepped up its expansion into derivatives. In April, it obtained a derivatives clearing organization, or DCO, license from the U.S. Commodity Futures Trading Commission, allowing it to manage derivatives settlement, collateral and risk management in-house.

The company said the license moves it closer to building a comprehensive trading platform spanning prediction markets, futures, options and perpetual futures contracts.

Gemini also said founders Tyler Winklevoss and Cameron Winklevoss made an additional $100 million investment funded by Bitcoin.

Despite the revenue gains, the company remained loss-making. Gemini posted a net loss of $109 million in the first quarter.

Revenue from the exchange business fell 27% from a year earlier to $17.2 million. Total trading volume also dropped to $6.3 billion this year from $13.5 billion a year earlier.

By contrast, services and interest income, including revenue from credit cards, staking and custody, rose more than 120% from a year earlier to $24.5 million, accounting for nearly half of total revenue. Credit card revenue alone surged 300% from a year earlier to $14.7 million.