Gemini Pushes Ahead With Nasdaq IPO Despite Mounting Losses

Gemini Pushes Ahead With Nasdaq IPO Despite Mounting Losses

Cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss in 2014, has formally filed its S‑1 registration with the U.S. Securities and Exchange Commission for a planned initial public offering. The filing, made public on August 15, confirms the company’s intention to list Class A common stock on the Nasdaq Global Select Market under the ticker symbol GEMI. Goldman Sachs, Citigroup, Morgan Stanley, and Cantor Fitzgerald will act as lead bookrunners, joined by a roster of other major underwriters.

The S‑1 reveals a challenging financial picture. For the first half of 2025, Gemini posted a net loss of $282.5 million on revenue of $68.6 million — a sharp deterioration from the $41.4 million loss on $74.3 million in revenue during the same period in 2024. Adjusted EBITDA swung from a $32 million profit in H1 2024 to a $113.5 million loss this year. For full‑year 2024, the exchange lost $158.5 million on $142.2 million in revenue.

The filing also outlines a significant operational shift: most users will be transitioned to a new Florida‑based entity called “Moonbase,” while Gemini Trust Company remains in New York. This appears aimed at easing the regulatory burden imposed by New York’s stringent BitLicense regime, which has limited Gemini’s ability to offer certain services — such as staking — in the state.

In a notable strategic move, Gemini secured a $150 million credit line from Ripple in July, linked to Ripple’s RLUSD stablecoin, to bolster liquidity ahead of the IPO. The company has also launched new products, including the Gemini Wallet for on‑chain asset management, and opened an operations center in Arizona to improve customer support.

Analysis

Gemini’s IPO bid comes at a time when investor appetite for crypto‑linked equities is rebounding, as seen in the strong market debuts of Bullish and Circle earlier this year. However, the exchange’s widening losses and shrinking revenues will be a focal point for potential investors, especially when compared to profitable rival Coinbase. The Ripple credit facility and regulatory restructuring suggest Gemini is shoring up its balance sheet and positioning for growth in friendlier jurisdictions, but the road to profitability remains uncertain.

If market sentiment toward digital assets stays positive and Gemini can convince investors that its restructuring will translate into revenue growth, the IPO could provide the capital needed to expand services and compete more aggressively. Conversely, without a clear path to profitability, GEMI shares may face a volatile reception once they hit the market. In short, this listing will be as much a referendum on Gemini’s turnaround plan as it is on the broader public market’s faith in crypto exchanges.