Gemini Slumps After $107.7M Q2 Loss, Revenue Growth Falls Short

Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, reported a significant net loss of $107.7 million in the second quarter. The company's shares plummeted more than 7% in after-hours trading as revenue growth fell short of market expectations.

Despite a 37% increase in overall revenue to $45.5 million, exchange revenue dropped 38% to $12.5 million due to lower trading volume, which declined to $3.8 billion from $11.3 billion in the previous year.

The company's credit-card revenue surged 231% to $16.2 million, while staking revenue rose 50% to $4 million. However, Gemini's prediction-markets business posted modest growth, generating $500,000 in second-quarter revenue and seeing a 93% increase in event contracts traded.

The company is considering adding crypto futures, options, and perpetual contracts to its platform as it aims to diversify revenue streams and reduce operating costs. Monthly active users rose 11% from a year earlier, but assets on the platform fell to $8.4 billion from $18.2 billion due to declining prices of major assets like Bitcoin.