Citi Downgrades Gemini to Sell Slashes Crypto Price Forecasts
Citigroup analyst Peter Christiansen downgraded Gemini Space Station (Nasdaq: GEMI) to Sell from Neutral, slashing the stock's price target by over 57% from $13 to $5.50. The move comes amid concerns over delayed profitability and stagnant U.S. crypto legislation. GEMI shares dropped more than 16% to around $5.95, nearly 79% below its September 2025 IPO price of $28.
The downgrade arrived just before Gemini's full-year 2025 earnings release. Christiansen now forecasts an adjusted EBITDA loss of $263 million for 2025 and pushed the breakeven estimate to 2029, a year later than Citi's prior forecast. The analyst cited four key concerns: declining user activity, significant restructuring, cyclical revenue headwinds, and slow U.S. crypto legislation progress.
Monthly app downloads fell to 41,000 in February, down from over 100,000 in each of the preceding nine months. Gemini recently announced a 25% headcount reduction and the wind-down of operations in the U.K., EU, and Australia. The company's COO, CFO, and Chief Legal Officer have since departed.
In addition to the GEMI downgrade, Citi cut its 12-month cryptocurrency price targets. The bank lowered its Bitcoin (BTC) forecast by 22% from $143,000 to $112,000 and its Ethereum (ETH) target by 26% from $4,304 to $3,175. Citi cited stalled momentum on the CLARITY Act as a key factor. At the time of writing, Bitcoin was trading near $71,250 and Ethereum near $2,175, both down amid inflation data and geopolitical uncertainty.