Gemini Space Station Shares Plunge 80% Since Listing, Fueling Takeover Talk

Shares of crypto platform Gemini Space Station (GEMI), founded by the Winklevoss twins, have plunged about 80% since its listing, fueling speculation that it could emerge as an acquisition target for buyers seeking its regulatory licenses and custody infrastructure.

CoinDesk reported on September 20 that Gemini’s market capitalization has shrunk to about $753 million from roughly $4 billion at its peak.

Business metrics have also deteriorated. Second-quarter exchange revenue fell 38% from a year earlier to $12.5 million, while spot trading volume dropped 66% to $3.8 billion. Assets on the platform declined to $8.4 billion from $18.2 billion.

Even so, the regulatory licenses and approvals held through Gemini subsidiaries are seen as key assets for a potential buyer. One venture capital investor said acquiring Gemini could be more efficient than obtaining the same approvals directly, given the time and legal costs involved.

Last month, Lorenzo Valente, ARK Invest’s director of digital asset research, wrote on X that Hyperliquid could acquire Gemini and use it as a route into regulated perpetual futures and prediction markets in the US. Still, there is no sign that Hyperliquid is actually pursuing a deal.

CoinDesk also reported in April that potential buyers were reviewing Gemini’s Europe and UK operations primarily to secure regulatory licenses rather than for the trading business itself. But no deal has been reached because of differences over valuation.

A key variable in any takeover scenario is whether the Winklevoss twins are willing to sell. The pair effectively control 94.5% of Gemini’s voting rights, making the decision-making structure simple if acquisition talks begin. But a hostile takeover or a shareholder-led sale without their consent would be difficult, the report said.