Gemini Pursues Nasdaq IPO Despite 282.5M Net Loss in H1 2025

Gemini, the New York-based cryptocurrency exchange, is preparing for a Nasdaq listing despite reporting a significant financial loss in the first half of 2025. The company filed its initial public offering (IPO) documents with the U.S. Securities and Exchange Commission (SEC), marking the first public offering of its shares. Goldman Sachs, Morgan Stanley, and Citigroup are leading the deal, though no price range has been disclosed [1]. The firm plans to implement a dual-class share structure, giving the Winklevoss twins, Tyler and Cameron, majority control through Class B shares, which carry ten votes per share [1].

Despite the IPO push, Gemini’s financial performance in the first half of 2025 raised red flags. The company reported a net loss of $282.5 million, a substantial increase from the $41.4 million loss in the same period in 2024. Revenue dropped by 7.6% year-over-year to $68.6 million, while adjusted EBITDA shifted from a $32 million profit in early 2024 to a $113.5 million loss [1]. The deteriorating financials are attributed to rising legal and payroll expenses, declining trading volumes, and losses from its “related-party crypto loans” program, which cost $62 million in the first half of 2025 [1].

To support its capital needs ahead of the listing, Gemini has secured a $75 million credit line in RLUSD, a stablecoin issued by Ripple. This liquidity support offers flexibility in managing compliance, customer service, and expansion costs [1]. The use of stablecoin financing, rather than traditional bank credit, highlights a potential new funding model for crypto exchanges, offering faster access to funds and on-chain transparency [1].

The broader crypto IPO environment is being driven by a bull market and clearer U.S. regulations. The rally in Bitcoin and Ethereum prices has reinvigorated investor interest and provided favorable conditions for market entry. Legislative efforts such as the GENIUS Act have also helped establish a more defined regulatory framework, reducing uncertainty for firms seeking public listings [1]. Analysts note that while current listings are largely driven by growth potential rather than immediate profitability, long-term success will depend on firms’ ability to manage risks and achieve sustainable earnings [1].

Gemini, founded in 2014 by the Winklevoss twins, has expanded into a multi-faceted crypto firm offering custodial services, stablecoin issuance, and NFT trading through its Nifty Gateway platform. However, the company has faced regulatory challenges, including legal disputes linked to its “Gemini Earn” lending program, which led to a $37 million fine and the return of over $1.1 billion to affected users [1].

Operationally, Gemini now operates under a “two-entity” structure, with Gemini Trust in New York and Moonbase in Florida. This setup allows for regulatory flexibility and strategic growth amid a rapidly evolving industry [1].

The Winklevoss twins gained early public attention during their high-profile dispute with Facebook co-founder Mark Zuckerberg over the creation of a Harvard-based social networking platform. The case was settled in 2008, with the brothers receiving both cash and Facebook shares, which significantly influenced their later investments in technology and finance [1].

The IPO represents a pivotal moment for Gemini as it seeks to expand its market presence and solidify its position in the crypto industry. However, the financial strain and regulatory scrutiny highlight the challenges it must overcome to build a sustainable path to profitability [1].

Source: [1] Gemini Aims for a Nasdaq Listing; Financial Losses Raise Concerns (https://coinmarketcap.com/community/articles/68a6f2ccf76e41605f294ac9/)