Gemini Stock Falls After Initial Surge
New York City-based crypto exchange Gemini Space Station Inc saw its stock rise sharply after its September IPO. The company raised $446.3 million during the offering. However, the stock has since dropped over 11%, causing investor caution. Competition and a lack of profits are key challenges for Gemini.
Wall Street opinions are divided. Six analysts rate the stock as a buy, while five recommend holding, according to a Bloomberg report.
Early Gains Fade Amid Strong Competition
On its first trading day, Gemini’s stock jumped 14%. The rise was supported by founders Cameron and Tyler Winklevoss’ political ties and excitement around crypto IPOs like Circle Internet Group and Bullish.
Since then, Gemini’s stock has fallen more than 11%. Competitors have performed better. Circle shares have surged over 370% since their IPO. Bullish stock is up more than 75%. Analysts say Gemini is trying to catch up.
Citigroup analyst Peter Christiansen, who has a neutral rating, said, “Investors can wait for more execution proof-points in rebuilding the user base, institutional partnerships, and providing a better line-of-sight towards profitability.”
Profitability and Regulatory Challenges
Gemini has not yet turned a profit. In the first half of 2025, it lost $282.5 million. The company earned $68.6 million from trading fees. Most revenue comes from platform trading, but marketing costs remain high.
The company’s Earn program, which offered interest on crypto deposits, faced issues after partner Genesis Global went bankrupt in 2023. Gemini paid $37 million to the New York Department of Financial Services and $50 million to the New York Attorney General. The company did not admit wrongdoing.
One positive is Gemini’s crypto rewards credit card, which offers cashback in cryptocurrency. Truist Securities analyst Matthew Coad said the card helps increase revenue and user growth. However, he warned the stock remains volatile due to the unstable crypto market.
