Cryptocurrency exchange Gemini, founded by the Winklevoss twins, has submitted an official listing application to Nasdaq. Despite significant financial challenges, the company aims to take advantage of the favorable environment for crypto investments.
Growing Losses Ahead of Public Market Entry
Gemini recently filed SEC documents indicating significant financial headwinds ahead of its expected IPO. In 2024, the exchange generated $142.2 million in revenue but incurred massive net losses of $158.5 million. By early 2025, losses had increased to $282.5 million against $67.9 million in revenue.
Cash Issues and Need for Capital
Gemini's cash situation also reflects the inherent operational pressures caused by continuous losses over the past few years. Cash reserves at the end of 2024 were $341.5 million but fell to $161.9 million in the first half of 2025. This decline underscores the urgency to raise funds in public capital markets.
Market Entry Strategy and Founders’ Control
Founded in 2014 by Cameron and Tyler Winklevoss, Gemini plans to implement a dual-class share structure, allowing founders to retain control through superior voting power. The exchange will work with Goldman Sachs, Morgan Stanley, and Citigroup as lead underwriters. An IPO is expected to proceed in favorable conditions following the recent successes of other crypto businesses in the market.
Gemini's IPO filing represents another test of institutional investor confidence in cryptocurrency infrastructure. The company's success could subsequently influence further investments in this sector.
