Cryptocurrency exchange Gemini's stock fell over 16% after Citigroup downgraded it from Neutral to Sell on Wednesday. Citi analysts project profitability for Gemini to be years away, lowering the price target from $13 to $5.50. The firm, founded by Cameron and Tyler Winklevoss, went public last September at $28 per share, raising $425 million.
Citi also reduced its price targets for Bitcoin and Ethereum this week, forecasting BTC at $112,000 and ETH at $3,175 within 12 months. Both cryptocurrencies saw declines following poor U.S. inflation data and geopolitical tensions. Gemini recently announced cost-cutting measures, including exiting European and Australian markets and reducing staff by 25%. The company aims to leverage AI to improve efficiency.