What’s New With Gemini Space Station Stock?
Shares in cryptocurrency exchange Gemini Space Station (NASDAQ: GEMI) have had a volatile start following their highly anticipated debut last month. The company priced its IPO at $28 per share, raising hundreds of millions of dollars in the process. While trading opened at $37 on the first day, the stock has since fallen to levels of about $20 per share, well below its IPO price, driven in part by the crypto selloff late last week and concerns about the company’s lack of profitability and a slower than expected pace of interest rate cuts by the Federal Reserve. That said, with the stock now down by close to 25% from its IPO price, and with its market cap standing at just about $2.3 billion, is the stock looking like a buy currently?
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Institutional Focused Crypto
Gemini has positioned itself as one of the more institutional-grade players in the crypto space, offering a wide range of products beyond its core exchange. Co-founded by Cameron and Tyler Winklevoss – known for their legal dispute with Mark Zuckerberg over Facebook’s origins – the company provides a U.S. dollar-backed stablecoin, a crypto rewards credit card, and an NFT studio. Most importantly, Gemini delivers digital asset custody services, catering to institutional investors that require secure, regulated infrastructure to hold crypto at scale.
Per its IPO filings, Gemini manages more than $21 billion in assets and serves about 10,000 institutions globally. This positioning – focused on regulation, compliance, and infrastructure – has given the exchange a reputation that is distinct from less regulated peers. That said, Gemini’s business model remains pretty reliant on a familiar lever for crypto exchanges: transaction fees on volume-based trades. While the company has successfully diversified into adjacent services, bringing in custody fees, credit card interchange fees, and treasury yields from its stablecoin, trading remains the lion’s share of revenue. That reliance creates a direct link between Gemini’s financials and the unpredictable swings of crypto trading activity.
Part of Gemini’s diversification strategy is its crypto-linked credit card, which converts everyday spending into crypto rewards. Beyond driving new revenue streams from interchange fees, the card functions as a customer acquisition tool as a significant portion of cardholders reportedly end up eventually using the exchange, effectively feeding Gemini’s core trading business while deepening customer engagement.
Growth Slowdown, Profitability Concerns, But There’s Reason For Optimism
At its current market cap, Gemini trades at a price-to-sales multiple of roughly 16x projected revenue. This is relatively high, especially since its growth story appears to be losing steam. In 2024, revenues rose about 40% to $136 million, but momentum has slowed sharply, with consensus projecting growth of only around 22% for this year. In fact, revenues in the first half of 2025 actually declined compared to the same period last year. Profitability also remains a major concern. Gemini posted heavy losses in 2024, and those losses have continued to grow. In the first half of 2025 alone, net losses stood at $282 million, bringing the trailing 12-month total to roughly $400 million — up sharply from $159 million in 2024.
That said, there are reasons for optimism. Relatively more mature crypto peer Coinbase, which is expected to grow revenue by about 13% this year, trades at around 12x projected revenue – not far below Gemini’s multiple. Gemini is also seeing increased analyst coverage in recent weeks, with most major banks taking positive or neutral views on the stock. This could also drive investor visibility and could help support the stock price.
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