Gemini Space Station (GEMI), the crypto exchange founded by Tyler and Cameron Winklevoss, reported a deeper-than-expected third-quarter loss in its first earnings since going public.
Heavy expenses, particularly on marketing and IPO-related costs, led to a net loss of $159.5 million, or $6.67 per share. share, in the period. That was double a loss of $3.24 per share. stock, which analysts had expected. The company’s shares fell 8.67% in premarket trading to $15.38, even as revenue more than doubled from the same period last year to $50.6 million.
Increased trading activity and non-exchange products such as a credit card with crypto rewards and staking services boosted revenue growth, which exceeded Coinbase’s (COIN) 55% during the same period. Kraken, another competitor, also said quarterly revenue more than doubled when it reported last month.
“Overall, we believe our balance sheet remains healthy with ample liquidity and diversified funding to support growth across our key products,” CFO Dan Chen said on the company’s earnings call.
The exchange, which went public at $28 per share in September, said it is building a multi-product “super app” that goes beyond crypto trading. It includes the planned introduction of regulated prediction markets for sporting and political events, pending regulatory approval.
“We’re very excited about these markets. We think it’s very early,” Cameron Winklevoss said in the earnings call. “This idea that you can essentially build a market on anything, any kind of event, is fascinating and really a limitless possibility.”
