New York, May 15, 2026, 08:03 (EDT)
- Winklevoss Capital Fund snapped up 7.14 million Gemini Class A shares, paying $14 each—roughly 1,258 bitcoin covered the price tag.
- Gemini’s first-quarter revenue landed at $50.3 million, a 42% increase, but the company still posted a net loss of $109.0 million.
- The stock jumped over 20% in premarket trading, having ended Thursday at $5.26 — a steep drop from its $28 IPO debut.
Shares of Gemini Space Station shot higher in Friday’s premarket after a fresh $100 million infusion from the Winklevoss twins’ family office—capital coming in at a premium to Thursday’s closing price. The founder-led deal arrives as the crypto exchange posted a narrower quarterly loss than analysts had been bracing for.
Timing matters here. Gemini debuted on the market in September priced at $28, yet shares ended Thursday at just $5.26. The company has struggled to reassure investors after a rocky opening stretch as a public firm.
With the fresh capital, Gemini is set to push further past its roots in spot crypto trading, eyeing ventures into credit cards, custody services, derivatives, and even prediction markets. Derivatives function as contracts linked to assets or events, with a clearing organization stepping in to manage counterparty risk, collateral, and settlement.
Winklevoss Capital Fund picked up 7,142,857 Class A shares at $14 apiece, according to a securities filing. Payment came in the form of roughly 1,258 bitcoin. Gemini, calling it the company’s largest stockholder, noted the fund is controlled by Cameron Winklevoss, who serves as president, and Tyler Winklevoss, chief executive.
Gemini posted a 42% jump in total revenue for the first quarter, hitting $50.3 million. The company managed to trim its net loss to $109.0 million from last year’s $149.3 million. Adjusted EBITDA stayed negative, coming in at $59.9 million.
The exchange’s main business continued to lag. Revenue from the core exchange slipped 27%, landing at $17.2 million, as overall trading volume saw a sharp drop—down to $6.3 billion from $13.5 billion a year ago, according to a filing. Over-the-counter trading, which covers large off-book trades, climbed to $6.3 million, though that figure comes off a low base.
Most of the heavy lifting came from Gemini’s newer business segments. Services and interest revenue jumped 122% to $24.5 million. Revenue from credit cards reached $14.7 million. As for prediction markets—where contracts are traded on event outcomes—they brought in $444,000 in their first full quarter.
Tyler Winklevoss called Gemini “significantly undervalued” by the market. Cameron Winklevoss pointed to the firm’s April approval from the U.S. Commodity Futures Trading Commission for a derivatives clearing organization license, saying it moves Gemini closer to building a wider platform for predictions, futures, and options. GlobeNewswire
Adam Frisch at Evercore sounded a more cautious note. In his view, Gemini shares probably wouldn’t have risen if not for the founders’ cash injection—since both user growth and revenue fell short of what was projected before the IPO. He also flagged the lack of revenue guidance, which he said leaves investors with little clarity.
Gemini is wading into a more crowded arena. Reuters noted that Fanatics, Robinhood, and Susquehanna have entered prediction markets as well. On the spot-crypto side, Gemini continues to contend with bigger players in U.S. retail trading.
Regulatory uncertainty looms over the pivot. Gemini warned that authorities or courts might step in—forcing changes to its prediction-market products, imposing limits, or possibly shutting them down altogether. The company also revealed that the New York attorney general, in April, filed a petition accusing Gemini Titan of running an unlicensed gambling operation through Gemini Predictions. On top of that, Gemini pointed to a securities class action from March, linked to its IPO documents, and said it plans to fight the allegations.
Expenses stayed high. Operating costs jumped 73%, coming in at $144.5 million for the quarter—compensation, tech, legal, and transaction losses all playing a part. As of March’s end, cash and cash equivalents sat at $215.6 million, not yet counting the $100 million private placement that wrapped up in May.
Friday morning brings Gemini’s earnings call, and investors are watching closely for clues on the company’s trajectory. The immediate issue: does the founders’ $100 million cash injection actually buy breathing room, or do sluggish exchange volumes and mounting legal pressure continue to weigh on the stock?
