Gemini Space Station (GEMI), the crypto exchange founded by Tyler and Cameron Winklevoss, reported a larger-than-expected third-quarter loss in its first earnings release since going public.
Significant spending, including marketing and IPO-related costs, resulted in a net loss of $159.5 million, or $6.67 per share, in the period. That’s double the per-share loss of $3.24 analysts expected. The company’s shares fell 8.67% in premarket trading to $15.38, even as revenue more than doubled from the year-ago period to $50.6 million.
Increased trading activity and non-exchange products like a crypto rewards credit card and staking services have driven revenue growth, which exceeded Coinbase’s (COIN) 55% for the same period. Kraken, another competitor, also said its quarterly revenue more than doubled when it reported last month.
“Overall, we believe our balance sheet remains healthy, with sufficient liquidity and diversified financing to support the growth of our key products,” CFO Dan Chen said during the company’s earnings call.
The exchange, which went public at $28 per share in September, said it was building a multi-product “super app” that goes beyond cryptocurrency trading. This includes the planned introduction of regulated prediction markets for sporting and political events, pending regulatory approval.
“We’re very excited about these markets. We think it’s early days,” Cameron Winklevoss said during the earnings conference call. “This idea that you can essentially create a market on anything, any type of event, is fascinating and a truly limitless opportunity.”
