Gemini Shares Plunge as Crypto Exchange Reports $159M Loss, Bets on ‘Super App’
Shares of crypto exchange Gemini fell sharply on Monday after the company released its first earnings report since going public, revealing substantial losses despite revenue growth.
Gemini Reports Heavy Losses Despite Revenue Growth
Gemini posted revenues of $50.6 million, more than double the $24.5 million recorded a year earlier. However, the exchange reported a net loss of $159.5 million, up $90.1 million year-on-year.
The widened losses were attributed to higher advertising costs and transition-related expenses as the company scales its operations. Following the earnings release, Gemini’s stock hit an all-time low of $14.75, down 40% from its $28 IPO price in September.
Expansion Into Crypto Prediction Markets
During the earnings call, co-founder Cameron Winklevoss highlighted Gemini’s plans to enter crypto prediction markets, describing them as a “boundless opportunity.”
“This idea that you can essentially build a market on anything — any kind of event — is fascinating,” Winklevoss said.
Analysts at Needham described the prediction markets expansion as attractive, although competition remains intense, including from platforms launched by Donald Trump’s social media company. Winklevoss compared the emerging market to Bitcoin’s early days in 2012, emphasizing its potential once regulatory frameworks permit.
Betting on a ‘Super App’ for Crypto Services
To increase revenues and strengthen investor confidence, Gemini is developing a crypto ‘super app’ designed to integrate its full suite of products.
“We’re really excited about building toward the super app. It’s an on-chain future. We’re an on-chain company, and this is our wheelhouse,” Winklevoss said.
The envisioned platform will allow users to hold tokenized dollars via stablecoins, tokenized equity, and digital commodities all in one app. Security blockchain firm OneSafe noted that a successful super app could streamline payroll processes for companies, but emphasized that regulatory compliance will be critical.
Looking Ahead
Despite the challenges highlighted by the disappointing earnings, Gemini is doubling down on innovation, aiming to capture new markets and expand its on-chain ecosystem. Analysts say the super app strategy could reshape how crypto services are integrated into daily financial operations — provided Gemini navigates regulatory hurdles effectively.
