Gemini Gambles on Public Markets Amid $282M Losses and Legal Hurdles

Gemini, the New York-based cryptocurrency exchange co-founded by Cameron and Tyler Winklevoss, has launched its initial public offering (IPO) targeting a valuation of up to $2.22 billion. The company plans to sell 16.67 million shares of Class A common stock at a price range of $17 to $19 per share. If priced at the top of the range, the offering could raise up to $317 million. The underwriters have also been granted a 30-day option to purchase up to an additional 2.5 million shares to cover potential over-allotments. The IPO is expected to trade on the Nasdaq Global Select Market under the ticker symbol "GEMI" [1].

This move reflects a broader trend of digital asset platforms seeking public market listings following a period of subdued investor interest. Gemini is the latest in a series of crypto firms exploring the public markets, following the recent successful IPO of Circle Internet Group in June, which raised $583 million. The firm reported $658 million in total revenue and reserve income for its first quarter as a public company, signaling continued demand for digital infrastructure [1].

Gemini’s IPO is being led by a consortium of Wall Street banks, including Goldman Sachs and Citigroup as lead bookrunners, with support from Morgan Stanley, Cantor, and other investment firms. The offering will be conducted through a prospectus, available from Goldman Sachs or Citigroup. The company has not disclosed a specific timeline for the listing, noting that the offering remains subject to market conditions [2].

Despite recent financial challenges, including net losses of $282.5 million in the first half of the year on total revenue of $68.6 million, Gemini remains committed to its public market ambitions. The company has also borrowed over $230 million from the Winklevoss brothers’ family office, Winklevoss Capital, to fund its cryptocurrency holdings, including Bitcoin and Ether. Additionally, Gemini is still navigating regulatory challenges, including a $37 million fine from New York state for unsafe practices and an order to return $1.1 billion to customers from its now-defunct lending service [3].

The offering marks a pivotal moment for one of the earliest regulated U.S. crypto exchanges, as it seeks to capitalize on a growing appetite for digital asset-related infrastructure. With the market for crypto listings showing signs of resilience, Gemini’s IPO could set a precedent for other exchanges aiming to enter the public market in the coming months [1].

Source: [1] Gemini IPO Targets $2.22B Valuation – Will Winklevoss Pull It Off? (https://finance.yahoo.com/news/gemini-ipo-targets-2-22b-155931570.html) [2] Gemini Announces Launch of Initial Public Offering (https://www.prnewswire.com/news-releases/gemini-announces-launch-of-initial-public-offering-302543703.html) [3] Despite losses, crypto exchange Gemini aims for $2.1B IPO (https://pitchbook.com/news/articles/despite-losses-crypto-exchange-gemini-aims-for-2-1b-ipo)