Gemini shares climbed about 9% in after-hours trading Thursday after the exchange reported a 42% year-over-year jump in first-quarter revenue. The numbers came alongside news that Winklevoss Capital made a $100 million strategic investment in the company, buying over 7 million Class A shares at $14 each — more than 2.5 times Gemini's closing price the day before. The purchase was settled in Bitcoin.
The Winklevoss Bitcoin bet
The investment structure is unusual. Winklevoss Capital paid $14 per share, while Gemini stock closed Wednesday at $4.92. That's a 185% premium. The $100 million was delivered in Bitcoin, meaning the sellers — likely the company or existing shareholders — took crypto rather than cash. The deal settled in May, after the quarter ended, so it didn't affect Gemini's cash position at quarter close. That cash pile stood at $215.6 million, down from $252.2 million at year-end.
Where the growth came from
Services revenue and interest income more than doubled year-over-year, hitting $24.5 million. That segment now accounts for 49% of total revenue, up from 31% a year ago. Credit card revenue surged nearly 300% to $14.7 million, with cumulative cardholders topping 123,700 over the past four quarters. Monthly transacting users hit 589,000, up 17% from last year.
Spot trading was a different story. Trading revenue fell 27% to $17.2 million on quarterly volumes of $6.3 billion — less than half the $13.5 billion seen in Q1 2025. The shift reflects an industry-wide move toward yield-generating products over simple buy-and-sell activity.
Costs are climbing
Despite the revenue jump, Gemini's net loss only narrowed to $109 million. Operating expenses rose 73% to $144.5 million, including $24.2 million in stock-based compensation and $6.5 million in severance costs. Adjusted EBITDA stayed negative at $59.9 million. The company is spending aggressively on growth and headcount, but hasn't turned the corner to profit yet.
Gemini received a Derivatives Clearing Organization license from the CFTC on April 29. That clears the way for in-house settlement and risk management for derivatives and a predictions market — a potentially big new revenue line. Management is scheduled to host its Q1 earnings call on May 15. Investors will be watching whether the services momentum can keep offsetting the slide in spot trading.
