Gemini Space Station, Winklevoss’s crypto exchange, has reported a strong 52% Q3 revenue growth since going public in September. However, the exchange saw a net loss of $159.5 million, equaling about $6.67 per share.
In the latest shareholder letter, the company highlighted that it netted nearly $50 million, a strong 52% growth in revenue from the previous quarter.
The firm reported a steeper loss than analysts’ expectations, according to a Bloomberg survey. Analysts anticipated a $3.24 loss per share, while the company posted a loss of $6.67.
Further, the exchange’s shares (GEMI) have fallen as much as 12% in post-market trading, following the announcement. The shares slipped to an all-time low below $15, per Google Finance data.
Drivers of Strong Revenue Growth
Gemini’s transaction revenue increased 26% quarter-over-quarter to $26.3 million, the report read. The surge is attributed to the exchange’s new features and expansion into new markets.
The firm reported 111% surge in services revenue to $19.9 million.
The surge reflects “continued diversification of Gemini’s business mix and growing contributions from credit card, staking, and custody products,” the New York-based company said.
“The Gemini Credit Card delivered record performance, surpassing 100,000 open accounts and more than $350 million in quarterly transaction volume, more than doubling quarter over quarter,” said Cameron Winklevoss, President and Co-Founder, Gemini, during the earnings call.
Additionally, the exchange introduced a self-custody wallet in August that aims to streamline user access to Web3 protocols, DeFi platforms, and on-chain applications. Besides, it is also preparing to launch prediction market contracts, competing with dominant players – Kalshi and Polymarket.
Gemini See Mounting Losses
The crypto platform has logged a massive $159.5 million loss in Q3, as Gemini’s operating expenses more than doubled from the same period last year.
The loss is largely due to stock-based compensation and its September IPO marketing, with adjusted EBITDA at negative $52.4 million.
“We expect spend levels in upcoming quarters to depend on the performance opportunities we see in the market,” said Marshall Beard, COO at Gemini, during Monday’s earnings call.
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