Crypto exchange Gemini, founded and led by the prominent Winklevoss brothers, experienced a significant surge in its shares during extended trading after announcing a substantial $100 million capital injection from Winklevoss Capital Fund, the venture capital arm of the crypto billionaires.
This strategic investment involved Winklevoss Capital purchasing shares of Gemini's Class A common stock at $14 each, with the payment made in bitcoin. The announcement coincided with the company's first-quarter financial update, which saw shares initially jump about 30% before settling to a 17% gain.
A screen displays an image of Gemini co-founders Tyler Winklevoss and Cameron Winklevoss, and the Gemini logo, during the company's IPO at the Nasdaq MarketSite, in New York City, U.S., Sept. 12, 2025.
Jeenah Moon | Reuters
Tyler Winklevoss, CEO of Gemini, expressed optimism regarding the investment, stating, "We believe the market has significantly undervalued Gemini, and that this investment will allow us to set up the company for its next phase of growth." He further emphasized Gemini's progress towards becoming a "markets company" beyond its crypto roots, citing recent product and regulatory milestones.
For the first quarter, Gemini reported a narrower-than-expected loss of 93 cents per share, outperforming analysts' expectations of a $1.03 per-share loss, according to FactSet. Revenue also surpassed projections, reaching $50.3 million against an anticipated $47.9 million.
While exchange revenue saw a 27% year-over-year decline to $17.2 million, other segments showed robust growth. Credit card revenue surged by nearly 300% from the previous year to $14.7 million, and services revenue alongside interest income collectively rose 122% year over year, totaling $24.5 million.
Since its public debut in September 2025, Gemini has navigated a challenging period marked by sustained losses, executive departures, withdrawal from international markets, and a strategic "company transformation" focusing on artificial intelligence and prediction markets. The company is also facing a class-action lawsuit in New York alleging misleading information during its IPO.
The stock's performance reflects these challenges, having fallen sharply from its IPO high of $45.89 on its trading debut to $5.26 per share at Thursday's close. Bitcoin, a key indicator for crypto firms, has also pulled back approximately 30% since Gemini's IPO.
Investors are keen to see if Gemini can establish stable revenue streams independent of volatile crypto market rallies. Cameron Winklevoss, cofounder and president of Gemini, recently discussed efforts to stabilize revenue, highlighting the company's ambition to become more integrated with broader markets to smooth out its earnings.
