Shares of the Winklevoss-founded crypto exchange Gemini surged more than 20% in premarket trading Friday after the company reported a smaller-than-expected quarterly loss and its founders injected $100 million into the business.
The investment was made by Winklevoss Capital Fund at $14 per share, paid in bitcoin. Cameron and Tyler Winklevoss control the fund. Gemini, based in New York, went public at $28 but its stock had fallen to $5.26.
Gemini reported a net loss of 93 cents per share for the first quarter, beating analyst expectations of $1.03. Revenue jumped 42% to $50.3 million, driven by growth in services and its over-the-counter trading platform.
Analysts remain cautious. Evercore analyst Adam Frisch said without the founders' investment, Gemini would likely be down on the print, noting key metrics like user and revenue reacceleration fell short of pre-IPO expectations.
CEO Tyler Winklevoss said the market has "significantly undervalued Gemini."
The results come amid turbulence. Gemini and its founders face a shareholder lawsuit alleging investors were misled about the firm's business prospects. In February, Gemini cut 25% of its workforce, wound down most international operations, and lost its COO, CFO, and legal officers. Danijela Stojanovic serves as interim CFO.
The Winklevoss twins first gained public prominence after suing Mark Zuckerberg over the idea for Facebook, settling for cash and stock in 2008.