Gemini Space Station shares continued their decline on Tuesday, falling 6% to $30.42 and extending losses to nearly 24% since the crypto exchange went public last Friday. The Winklevoss brothers’ company raised $425 million in its IPO, pricing shares at $28 and achieving a $3.3 billion valuation.
The stock initially surged on its debut, reaching $45.89 before closing at $32 on the first trading day. This represented a 14% premium to the IPO price and generated early optimism among investors.
However, the momentum quickly reversed as traders began examining Gemini’s financial performance more closely. Since hitting that first-day peak, shares have plummeted more than 34%, erasing most of the initial gains.
The company’s latest financial results reveal growing losses that concern market participants. Gemini reported a $283 million net loss for the first half of 2025, nearly doubling the $159 million loss recorded for the entire year of 2024.
This deteriorating financial picture contrasts sharply with the company’s high market valuation. Compass Point analyst Ed Engel highlighted that Gemini currently trades at 26 times its annualized first-half revenue.
This price-to-sales multiple means investors pay $26 for every dollar of expected annual revenue. For context, the peer group average stands at 3.2 times revenue, while the broader industry averages 4 times revenue.
The steep valuation becomes more problematic when considering Gemini’s unprofitable status and lack of clear earnings visibility. Analysts suggest the current pricing reflects either overly optimistic growth expectations or insufficient consideration of financial risks.
Engel calculated a fair value of $32.52 per share, indicating the stock appears overvalued at current levels. Without clear evidence of sustainable revenue growth or improving profit margins, justifying such premium pricing proves challenging.
The broader cryptocurrency equity sector showed mixed but generally more stable performance during Gemini’s decline. Coinbase, the largest US crypto exchange, remained flat over the past week despite posting disappointing quarterly results.
The company reported $1.50 billion in quarterly revenue, falling short of analyst expectations by 4.3%. Monthly active users reached 8.7 million, up 6.1% year-over-year, but this also missed estimates.
Circle Internet Group bucked the trend with a 13% gain over the same period, trading at $135.75 per share. The token issuer’s one-month return reached 11.48%, though shares declined 17.04% over the past three months.
Robinhood, which generates part of its revenue from cryptocurrency trading, fell 3% for the week. The trading platform reported stronger results with $989 million in quarterly revenue, exceeding analyst expectations by 7.4%.
CEO Vlad Tenev highlighted the launch of tokenization services as a key innovation, calling it “the biggest innovation our industry has seen in the past decade.” The company showed solid user growth and beat EBITDA estimates.
The divergent performance across crypto-related stocks suggests Gemini’s struggles stem from company-specific factors rather than broader sector headwinds. Investors appear focused on individual fundamentals rather than painting the entire space with the same brush.
Cameron and Tyler Winklevoss founded Gemini Space Station as a regulated cryptocurrency exchange competing directly with established players like Coinbase. The company’s public debut represented a test of investor appetite for crypto infrastructure companies.
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