Gemini shares slide after $108 million loss as Winklevoss says 'we still have work to do'
Gemini shares slid more than 7% in after-hours trading on Thursday after the crypto exchange reported a $107.7 million net loss for the second quarter, despite revenue growing 37%
The company recorded $45.5 million in total revenue, up from $33.3 million a year earlier. Its net loss narrowed 19% from $133.2 million over the same period.
"While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue," Gemini CEO Tyler Winklevoss said in a statement.
Gemini's credit card revenue jumped 231% to $16.2 million, while staking revenue grew 50% to $4 million.
However, exchange revenue fell 38% to $12.5 million amid a total trading volume drop to $3.8 billion from $11.3 billion a year earlier.
Prediction market volume
Gemini's prediction market generated $500,000 in revenue during the quarter, up slightly from the $400,000 it disclosed following its December launch. Despite a meager jump in revenue, the number of event contracts traded on the platform rose 93% from the first quarter.
The company activated its derivatives clearinghouse earlier this month after receiving approval from the Commodity Futures Trading Commission in April. It allows Gemini to clear and settle its own prediction market contracts as it explores adding crypto futures, options and perpetual contracts.
The exchange has been working to expand into a broader markets platform as trading activity on its core crypto exchange dwindles quarter after quarter. Part of this push saw it launching commission-free U.S. stock trading in July.
"The Gemini platform has changed more in the past nine months than it did in the past decade," Gemini President Cameron Winklevoss said.
Gemini's monthly transacting users increased 11% year over year, but assets on the platform declined to $8.4 billion from $18.2 billion in the period as major assets like bitcoin lost 50% of value.
Shares of Gemini Space Station (GEMI) are now back to trading near their all-time lows of below $4.
