What to know:
- Gemini Space Station shares jumped more than 25% in pre-market trading even as the company reported a first-quarter net loss of $109 million, or 93 cents a share, missing Wall Street estimates.
- Revenue rose 42 percent from a year earlier to $50.3 million, helping narrow losses from $149.3 million, but operating expenses surged 73 percent to $144.5 million on higher compensation, severance and marketing costs.
- Gemini is betting that layoffs, exits from the U.K., European Union and Australia, a $100 million bitcoin-funded investment from Winklevoss Capital and a new CFTC-cleared derivatives business will eventually turn its capital-intensive expansion into profitability.
Despite losing $109 million in the first three months of 2026, Gemini Space Station Inc. (GEMI) stock saw a significant increase, rising over 25% before regular trading began.
Gemini, the cryptocurrency exchange created by Cameron and Tyler Winklevoss, saw its revenue increase by 42% in the last year, reaching $50.3 million. This improvement also led to a smaller net loss, decreasing by 27% from $149.3 million to a lower amount.
Despite the $109 million loss, which came out to 93 cents per share, the company still performed worse than expected, as analysts had predicted a loss of only 61 cents per share.
Gemini has consistently lost money as it works to change the way it operates. High costs, especially for marketing and going public, resulted in a $159.5 million loss in the third quarter of last year. Earlier, the company reported a $283 million loss for the first half of the year.
Operating costs jumped 73% from last year, reaching $144.5 million. This increase was mainly due to a 91% rise in employee compensation – including $6.5 million in severance payments related to recent layoffs – and a doubling of spending on sales and marketing, which totaled $19.1 million.
The company hopes to become profitable by streamlining its workforce and using a $100 million investment from Winklevoss Capital Fund, LLC, which was funded with Bitcoin.
In February, Gemini stopped operating in the U.K., the European Union, and Australia. The company also cut its staff by 25% to concentrate on the U.S. market and prediction markets. Despite this, its stock price initially rose, moving from $6.19 in late February to $4.04 by March 30th.
In April, the company received approval from the Commodity Futures Trading Commission (CFTC) to operate a derivatives clearinghouse. This license enables it to participate in the rapidly expanding and competitive world of prediction markets, which are a type of regulated derivative and increasingly popular in the crypto space.
Since then, the company’s stock price has slowly increased to just over $6.60, jumping more than 25% before the market officially opened.
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2026-05-15 15:16