Gemini Q3 Loss $159M Amid 100% Revenue Growth
Gemini reported a net loss of $159 million in Q3, driven by one-time IPO costs for its planned Nasdaq listing, including regulatory compliance fees, technology upgrades and advisory charges. Net revenue rose 52% quarter-on-quarter to $49.8 million and more than doubled year-on-year to $50.6 million, powered by a record $16.4 billion trading volume and a booming credit card program. Services revenue, covering staking, custody and card fees, jumped 111% to $19.9 million. Despite strong user growth and diversified fee streams, operating expenses of $171.4 million outpaced revenue. Traders should weigh the credibility boost from a Nasdaq debut against ongoing losses and funding needs. Future performance hinges on cost control, capital efficiency and compliance with public reporting standards.
Neutral
The report highlights significant revenue growth and strategic investments for Gemini’s planned Nasdaq listing, which could bolster long-term credibility and user confidence. However, the substantial net loss and high operating expenses may pressure short-term liquidity and trading volumes. Traders may see muted price reactions until the exchange demonstrates improved cost management and stable profitability.