Winklevoss-Backed Gemini Files for $400 Million IPO Amid Mounting Losses
Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has officially filed for an initial public offering in the United States, aiming to raise an estimated $400 million. The move places the New York-based company at the center of Wall Street’s growing interest in digital assets, despite reporting mounting losses and tighter liquidity in recent quarters.
IPO Plans and Market Context
According to filings with the SEC, Gemini intends to list its shares on the Nasdaq under the ticker GEMI. The company first submitted a confidential filing in February 2025, before going public with its IPO documents in mid-August. Leading investment banks including Goldman Sachs, Citigroup, Morgan Stanley, and Cantor Fitzgerald have been appointed as bookrunners, underscoring the deal’s high-profile nature.
The Gemini IPO arrives amid a surge in crypto-related listings. Companies like Circle and Bullish have already tested the market, reflecting Wall Street’s revived appetite for exposure to blockchain infrastructure. With regulatory signals turning more favorable under the Trump administration, investors are once again flocking to the sector. Yet, Gemini’s financial performance suggests a more cautious story than the headline valuation might imply.
Financial Performance Under Pressure
While Gemini has built a reputation for regulatory compliance and institutional credibility, its recent financials highlight deep structural challenges. For the first half of 2025, the company reported a net loss of $282.5 million on revenues of just $68.8 million, marking a sharp deterioration from the same period a year earlier when losses stood at $41.4 million on higher revenues of $74.3 million.
For the full year 2024, Gemini booked revenues of $142.2 million but ended with a net loss of $158.5 million. The rapid widening of losses reflects both the volatility of crypto markets and the heavy costs associated with scaling a regulated exchange platform. As of June 30, 2025, the company held $161.9 million in cash, down from $341.5 million at the end of 2024, a decline that underscores the urgency of raising fresh capital through the IPO.
User Base and Institutional Reach
Despite the financial headwinds, Gemini’s operating metrics highlight a substantial user base. The company serves 523,000 monthly transacting users and more than 10,000 institutional clients across over 60 countries. Lifetime trading volume on the platform has surpassed $285 billion, while crypto assets under custody totaled $18 billion at the end of June 2025.
Gemini’s offerings span spot and derivatives trading, staking services, OTC desks, and crypto custody. The firm also operates a regulated stablecoin, bolstering its role as a full-service digital asset platform for both retail and institutional participants.
Governance and Dual-Class Structure
The IPO filing revealed that Gemini will adopt a dual-class share structure, with Class A shares carrying one vote and Class B shares carrying 10 votes each. This setup ensures that the Winklevoss twins will maintain long-term control, holding approximately 70% of total voting power even after the public listing. While such arrangements are common among technology companies, they may raise concerns among prospective investors seeking stronger corporate governance safeguards.
Regulatory Strategy and Corporate Structure
Gemini has positioned itself as one of the most compliance-focused exchanges in the industry. The company operates through Gemini Trust, regulated in New York, and Moonbase, a Florida entity that handles staking services restricted under New York’s BitLicense framework. This dual-entity approach reflects Gemini’s effort to balance regulatory compliance with business flexibility.
The exchange holds money transmitter licenses across multiple U.S. states and is authorized to serve clients in the European Union. Earlier in 2025, Gemini relocated certain European operations from Ireland to Malta, citing a more favorable regulatory landscape.
Liquidity Management and Financing Lines
In addition to the IPO proceeds, Gemini has arranged a $75 million credit line with Ripple, expandable to $150 million. The facility, denominated in Ripple’s RLUSD stablecoin, has not yet been drawn but serves as a backstop for liquidity needs. The company’s reliance on external financing highlights its vulnerable cash position, especially given its sustained losses.
Broader Implications for the Crypto Market
Gemini’s IPO is more than just a capital-raising exercise; it is a test case for investor confidence in the next wave of crypto infrastructure companies. On the one hand, the exchange offers credibility, compliance, and a large base of institutional users—characteristics that differentiate it from less-regulated competitors. On the other, its widening losses and diminishing cash reserves raise questions about long-term sustainability.
The company’s decision to proceed with a listing in the current market reflects optimism that investors will reward its regulatory-first approach and brand recognition. Yet, with the digital asset sector prone to cycles of exuberance and correction, Gemini’s valuation and reception in the public markets remain uncertain.
Outlook
As Gemini prepares for its Nasdaq debut, the stakes are high. If successful, the IPO could cement the Winklevoss twins’ exchange as a leading player in the global digital asset ecosystem. It could also provide a template for other crypto firms seeking legitimacy through public markets. However, should investor skepticism outweigh market enthusiasm, Gemini risks being perceived as another cautionary tale of growth without profitability.
For investors, the upcoming listing presents a balancing act: weighing the potential of a regulated, global crypto exchange against the stark reality of heavy losses and liquidity pressures. The market’s response will reveal whether Wall Street is ready to embrace Gemini’s vision—or whether doubts about profitability will dominate the narrative.
