Gemini lost $108 million in the second quarter even as overall revenue climbed 37%, a split picture that shows the crypto exchange's pivot toward recurring services is working — but not fast enough to offset a brutal drop in trading.
Why trading revenue collapsed
Exchange revenue fell 38% in Q2, and trading volume sank by two-thirds. The numbers point to a quiet quarter for spot markets, with fewer customers actively buying and selling crypto on the platform. Gemini didn't break out dollar figures for either metric, but the percentage declines are steep by any standard.
The volume drop isn't a surprise to anyone who watched crypto markets this spring. Volatility dried up, and retail traders who had been active during the boom sat on their hands. For an exchange that built its name on retail trading, that's a direct hit to the top line.
The services side of the business
What kept revenue growing was everything else. Credit card and staking revenue drove Gemini's services growth in Q2, according to the company's financial report. Those are recurring or usage-based products — customers pay fees on card spending or earn yields on staked assets — rather than one-off trade commissions.
That mix shift is deliberate. Gemini has been pushing its credit card and staking products for years, and the Q2 numbers suggest the strategy is gaining traction. Services revenue now cushions the exchange when trading activity cools.
What the loss means
A $108 million net loss on growing revenue is a familiar pattern for crypto companies that are spending heavily to build out new products and expand into new markets. Gemini has been investing in its card program, staking infrastructure, and international licensing, and those costs show up on the bottom line.
The loss also raises the stakes for the services business. If trading stays weak, Gemini will need card and staking revenue to keep growing just to narrow the gap. The company didn't provide guidance for the current quarter, so it's unclear whether management expects the trading slump to persist.
What to watch next
Gemini's next earnings report will show whether the services growth can accelerate enough to offset the exchange decline. The company also faces an open question: can it win back trading volume if markets heat up again, or have customers moved to competitors with deeper liquidity?
For now, the Q2 numbers tell a story of a business in transition — one that's losing money on trading while building a steadier revenue base elsewhere. Whether that trade-off pays off is the story to follow.
