Gemini shares jumped more than 25% in pre-market trading after Winklevoss Capital announced a $100 million strategic investment funded by Bitcoin. The infusion, priced at $14 per share, came just as the exchange reported a first-quarter net loss of $109 million.
Revenue climbed 42% year-over-year to $50.3 million, but operating expenses surged 73% to $144.5 million. The net loss of $109 million, or 93 cents per share, missed Wall Street estimates. Monthly transacting users rose 17% to 589,000, but exchange revenue fell 27% to $17.2 million.
Gemini has been executing a dramatic strategic pivot. The company cut its workforce by 25%, exited the UK, EU, and Australia, and is focusing on a new CFTC-cleared derivatives business. It also received a Derivatives Clearing Organization license from the Commodity Futures Trading Commission, opening a regulated pathway into the derivatives market.
The $100 million investment provides a critical liquidity buffer. Before this infusion, Gemini’s cash was declining by roughly $36 million per quarter. The new capital extends the company’s runway by two to three quarters.
Gemini went public on September 11, 2025 at $28 per share. Less than a year later, the stock was trading around $5. A securities class action lawsuit has been filed against Gemini, adding another layer of risk.
The broader crypto market provided some tailwinds. Bitcoin was trading at $80,120, and total crypto market capitalization stood at approximately $2.76 trillion.