Gemini plans a Nasdaq IPO but faces widening losses, with revenue falling and costs rising, raising investor concerns about financial stability.
Ripple provides Gemini with a $75M stablecoin credit line, offering liquidity support and signaling adaptability ahead of the IPO.
Bull markets and clearer U.S. rules fuel crypto IPOs, but long-term success depends on profitability and risk management.
The crypto IPO wave keeps rising. Gemini announced a push for Nasdaq, but first-half revenue fell and net loss grew sharply, showing financial strain. The bull market and looser rules support the market, but profit and risk control remain key for investors.
GEMINI AIMS FOR A NASDAQ LISTING; FINANCIAL LOSSES RAISE CONCERNS
Crypto asset companies are in a new rush to list in the U.S.: after stablecoin issuer Circle and exchange Bullish went public with fanfare, Gemini also said last Friday it will list on Nasdaq, becoming the third crypto trading platform to seek a public listing. However, its prospectus shows that first-half revenue fell and the net loss widened sharply, in clear contrast with some peers that already show profits or strong stock performance.
WITH LISTING NEAR, FINANCIAL LOSSES ARE GEMINI’S BIGGEST WORRY
According to Gemini’s IPO filing with the U.S. Securities and Exchange Commission (SEC), this listing will mark the first public trading of its shares. The price range is not yet disclosed. The offering is led by a group of major investment banks, including Goldman Sachs, Morgan Stanley, and Citigroup, which will help set the price and manage the deal.
Gemini plans a dual-class structure after the IPO. Class A shares have one vote per share. Class B shares have ten votes per share. The Winklevoss twins will hold all Class B shares, keeping majority voting control. This setup qualifies Gemini as a “controlled company” under Nasdaq rules and lets the founders keep strategic control after listing.
However, despite the move to the public market, the finances show clear stress.
In the first half of 2025, Gemini posted a net loss of $282.5 million, up from a $41.4 million loss in the same period of 2024. Revenue was $68.6 million, down about 7.6% year over year. Adjusted EBITDA moved from a $32 million profit in the first half of 2024 to a $113.5 million loss.
The main reasons include higher legal costs, rising payroll, and lower trading volume. Payroll and compensation reached $71.1 million in the first half of 2025, which was higher than total revenue. The company also recorded a $62 million loss in a “related-party crypto loans” program. This is better than the loss of nearly $222 million in the first half of 2024, but it still weighs on the finances.
GEMINI SECURES RIPPLE CREDIT LINE TO SUPPORT POST-IPO CAPITAL
To ease pressure, Gemini reached a key deal with Ripple. Under the plan, Gemini will receive a credit line of up to $75 million in the RLUSD stablecoin. This gives the company more operating room and can fund expansion, customer service, and compliance costs.
RLUSD is a U.S. dollar-pegged stablecoin backed by the Ripple ecosystem.
Industry watchers say this kind of stablecoin credit may become a new funding model for exchanges. Unlike bank credit, stablecoin credit offers instant settlement, cross-border ease, and on-chain transparency. It can improve liquidity and risk resistance. For Gemini, this line is not only a short-term buffer. It is also a signal before the IPO that the firm can manage capital and adapt to the market.
BULL MARKET AND LOOSER RULES DRIVE THE IPO WAVE
Today’s crypto IPO boom comes from two forces: the bull market and policy support. This year, crypto markets have recovered. Prices of Bitcoin (BTC) and Ethereum (ETH) have risen. Trading activity and institutional interest have grown. This gives better conditions for financing and valuation. The bull market draws retail investors back and raises risk appetite for institutions, creating a base for listings by exchanges and stablecoin issuers.
On policy, the U.S. has rolled out several stablecoin laws (such as the GENIUS Act), which offer a clear framework and reduce compliance uncertainty. Regulators show more openness to digital asset innovation while seeking investor protection.
The current wave reflects faith in growth potential and the industry outlook, rather than near-term profits. Over time, as rules settle and markets mature, valuations may become more rational. Profitability and risk control will become the key tests of long-term value for listed crypto firms.
FROM CAMPUS DISPUTE TO THE CRYPTO STAGE
Gemini is a crypto exchange and custodian founded in 2014 by twins Tyler and Cameron Winklevoss, based in New York. Early on, it received a limited purpose trust charter from the New York Department of Financial Services. In 2016, it became one of the first U.S. platforms approved to trade Ethereum (ETH).
Over time, Gemini launched its own stablecoin, Gemini Dollar (GUSD), and the NFT marketplace Nifty Gateway. In 2021, it raised $400 million, valuing the company at about $7.1 billion. But its “Gemini Earn” lending program faced legal disputes tied to Genesis. The firm returned more than $1.1 billion to users and paid a $37 million fine.
Operationally, Gemini now uses a “two-entity” structure. Gemini Trust is in New York, and Moonbase is in Florida. This split helps navigate regulation and keep flexibility.
Before founding Gemini, the brothers became known for their dispute with Meta founder Mark Zuckerberg.
While at Harvard, Tyler and Cameron created a social site called ConnectU for college students. In late 2003, they hired Zuckerberg to help code the site. Later, they said Zuckerberg used their idea to build Facebook, which violated their rights.
In 2004, the brothers and the ConnectU team sued Zuckerberg and sought damages. After years of litigation and talks, the parties settled in 2008. The brothers received about $20 million in cash and about 4.5 million Facebook shares (worth about $430 million at that time).
This money and public attention gave them capital and influence for later tech and finance investments. It also helped lay the groundwork for Gemini.
〈Gemini Aims for a Nasdaq Listing; Financial Losses Raise Concerns〉這篇文章最早發佈於《CoinRank》。
