TLDR
- Gemini shares rose as much as 30% in after-hours trading after the company reported 42% year over year revenue growth.
- The crypto exchange posted $50.3 million in first-quarter revenue, up from $35.3 million a year earlier.
- Gemini recorded a net loss of $109 million despite overall revenue growth during the quarter.
- The company generated $400,000 in revenue from its prediction market since launching the product in December.
- More than 20,000 users traded over 100 million contracts on Gemini’s prediction market platform.
Gemini (GEMI) shares climbed as much as 30% in after-hours trading on Thursday after the company reported 42% year-over-year revenue growth. The crypto exchange posted $50.3 million in first-quarter revenue, up from $35.3 million a year earlier. It also released its first operating metrics for its in-house prediction market business.
Gemini Space Station, Inc. Class A Common Stock, GEMI
Gemini Shares Jump as Revenue Climbs 42%
Gemini reported $50.3 million in total revenue for the first quarter, reflecting a 42% annual increase. The company generated $35.3 million in the same period last year, and it expanded revenue across several segments. Services, over-the-counter trading, and its crypto-linked credit card business supported the overall growth.
However, the company recorded a net loss of $109 million for the quarter. Exchange revenue declined 27% year over year to $17.2 million as trading activity slowed. Total trading volume fell to $6.3 billion from $13.5 billion a year earlier.
Services and interest revenue rose more than 120% year over year to $24.5 million. This segment accounted for nearly half of total revenue during the quarter. Credit card revenue alone reached $14.7 million, marking a 300% increase from last year.
Gemini also reported that April trading volume rose 78% from the previous month. The company attributed the growth to expanding product offerings and user activity. It shared the update alongside its quarterly financial results.
Prediction Market and Derivatives Expansion
Gemini disclosed $400,000 in revenue from its prediction market since launching the product in December. The company said more than 20,000 users traded contracts on the platform. Users have traded over 100 million contracts since launch.
In comparison, prediction market operators like Kalshi and Polymarket record daily volumes between $300,000 and $500,000. Gemini positioned its product as part of a broader marketplace strategy. The company aims to expand beyond spot crypto trading into derivatives.
In April, Gemini received a Derivatives Clearing Organization license from the Commodity Futures Trading Commission. The license allows Gemini to manage settlement, collateral, and risk for derivatives products internally. The company said the approval moves it closer to building a full-stack marketplace.
“Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company,” said Tyler Winklevoss in a statement. He added that the company will focus on predictions, futures, options, and perpetual contracts. The company also announced a $100 million investment from founders Tyler and Cameron Winklevoss through the Winklevoss Capital Fund, funded in Bitcoin.
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