Gemini Crypto Exchange Q3 Revenue Jumps 52% Despite Share Slump
Share:
Gemini Space Station, Winklevoss’s crypto exchange, has reported a strong 52% Q3 revenue growth since going public in September. However, the exchange saw a net loss of $159.5 million, equaling about $6.67 per share.
In the latest shareholder letter, the company highlighted that it netted nearly $50 million, a strong 52% growth in revenue from the previous quarter.
The firm reported a steeper loss than analysts’ expectations, according to a Bloomberg survey. Analysts anticipated a $3.24 loss per share, while the company posted a loss of $6.67.
Further, the exchange’s shares (GEMI) have fallen as much as 12% in post-market trading, following the announcement. The shares slipped to an all-time low below $15, per Google Finance data.
Drivers of Strong Revenue Growth
Gemini’s transaction revenue increased 26% quarter-over-quarter to $26.3 million, the report read. The surge is attributed to the exchange’s new features and expansion into new markets.
The firm reported 111% surge in services revenue to $19.9 million.
The surge reflects “continued diversification of Gemini’s business mix and growing contributions from credit card, staking, and custody products,” the New York-based company said.
“The Gemini Credit Card delivered record performance, surpassing 100,000 open accounts and more than $350 million in quarterly transaction volume, more than doubling quarter over quarter,” said Cameron Winklevoss, President and Co-Founder, Gemini, during the earnings call.
Additionally, the exchange introduced a self-custody wallet in August that aims to streamline user access to Web3 protocols, DeFi platforms, and on-chain applications. Besides, it is also preparing to launch prediction market contracts, competing with dominant players – Kalshi and Polymarket.
Gemini See Mounting Losses
The crypto platform has logged a massive $159.5 million loss in Q3, as Gemini’s operating expenses more than doubled from the same period last year.
The loss is largely due to stock-based compensation and its September IPO marketing, with adjusted EBITDA at negative $52.4 million.
“We expect spend levels in upcoming quarters to depend on the performance opportunities we see in the market,” said Marshall Beard, COO at Gemini, during Monday’s earnings call.
The post Gemini Crypto Exchange Q3 Revenue Jumps 52% Despite Share Slump appeared first on Cryptonews.
In This News
Coins
Share:
In This News
Coins
Share:
Read More
Vitalik Buterin’s Damning Critique: Why Most ‘DeFi’ is Fake and What Real Decentralization Demands
Bithumb BTC Transfer Blunder: The Daunting 13B Won Recovery Challenge
Gemini Crypto Exchange Q3 Revenue Jumps 52% Despite Share Slump
Share:
Gemini Space Station, Winklevoss’s crypto exchange, has reported a strong 52% Q3 revenue growth since going public in September. However, the exchange saw a net loss of $159.5 million, equaling about $6.67 per share.
In the latest shareholder letter, the company highlighted that it netted nearly $50 million, a strong 52% growth in revenue from the previous quarter.
The firm reported a steeper loss than analysts’ expectations, according to a Bloomberg survey. Analysts anticipated a $3.24 loss per share, while the company posted a loss of $6.67.
Further, the exchange’s shares (GEMI) have fallen as much as 12% in post-market trading, following the announcement. The shares slipped to an all-time low below $15, per Google Finance data.
Drivers of Strong Revenue Growth
Gemini’s transaction revenue increased 26% quarter-over-quarter to $26.3 million, the report read. The surge is attributed to the exchange’s new features and expansion into new markets.
The firm reported 111% surge in services revenue to $19.9 million.
The surge reflects “continued diversification of Gemini’s business mix and growing contributions from credit card, staking, and custody products,” the New York-based company said.
“The Gemini Credit Card delivered record performance, surpassing 100,000 open accounts and more than $350 million in quarterly transaction volume, more than doubling quarter over quarter,” said Cameron Winklevoss, President and Co-Founder, Gemini, during the earnings call.
Additionally, the exchange introduced a self-custody wallet in August that aims to streamline user access to Web3 protocols, DeFi platforms, and on-chain applications. Besides, it is also preparing to launch prediction market contracts, competing with dominant players – Kalshi and Polymarket.
Gemini See Mounting Losses
The crypto platform has logged a massive $159.5 million loss in Q3, as Gemini’s operating expenses more than doubled from the same period last year.
The loss is largely due to stock-based compensation and its September IPO marketing, with adjusted EBITDA at negative $52.4 million.
“We expect spend levels in upcoming quarters to depend on the performance opportunities we see in the market,” said Marshall Beard, COO at Gemini, during Monday’s earnings call.
The post Gemini Crypto Exchange Q3 Revenue Jumps 52% Despite Share Slump appeared first on Cryptonews.
In This News
Coins
Share:
In This News
Coins
Share:
Read More
Vitalik Buterin’s Damning Critique: Why Most ‘DeFi’ is Fake and What Real Decentralization Demands