Gemini reports a huge loss of $160 million after going public: High costs pressure stock price
Cryptocurrency exchange Gemini has announced its Q3 financial report, with revenue of $50.59 million, more than doubling year-on-year, but net losses have expanded to $159 million, primarily due to cost expenditures prior to its Nasdaq listing. This result caused its stock price to plummet in after-hours trading, hitting an all-time low.
Gemini's financial report reflects rapid revenue growth but ongoing profitability challenges, indicating fierce competition in the current industry. Its business model leans towards super applications, prediction markets, and compliance services, but it is difficult to cover high operational and expansion costs in the short term.
Attention is focused on whether Gemini can effectively control costs in Q4 and continue to expand its market share in compliance areas such as the MiCA license and the Australian market, especially in the growth of its cryptocurrency credit card and staking services. Continued losses for Gemini could pressure its long-term capital structure, especially in the current weak market environment, where the investment risk in cryptocurrency stocks is higher than $BTC
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