Gemini Shares Fall After $108 Million Q2 Loss

Gemini shares dropped more than 7% in after-hours trading Thursday after the crypto exchange posted a $107.7 million net loss for the second quarter, even as total revenue grew 37% to $45.5 million. CEO Tyler Winklevoss said the company still has work to do but pointed to progress on cutting costs and diversifying revenue.

New Revenue Streams Offset Weak Trading

Credit card revenue jumped 231% to $16.2 million and staking revenue rose 50% to $4 million, helping offset a 38% drop in exchange revenue as trading volume fell to $3.8 billion from $11.3 billion a year earlier.

Prediction Markets and Platform Expansion

Prediction market contracts traded rose 93% quarter over quarter, passing 225 million cumulative contracts, after Gemini activated its CFTC approved derivatives clearinghouse this month. The company also launched commission-free US stock trading in July as part of its push into a broader markets platform. Monthly users grew 11% year over year, though platform assets fell to $8.4 billion from $18.2 billion amid a steep drop in crypto prices. Shares are now trading near record lows below $4.