Gemini shares surge 20% after Winklevoss twins inject $100M into struggling crypto exchange

Gemini shares jumped more than 20% in premarket trading on Friday after the crypto exchange reported a smaller quarterly loss than Wall Street expected and revealed a fresh $100 million investment from founders Cameron and Tyler Winklevoss.

The rally offered a rare moment of relief for a company that has spent months under pressure from layoffs, executive departures, shareholder lawsuits, and a stock price collapse that erased much of the excitement surrounding its IPO.

Gemini shares were priced at $28 during the company’s public debut but closed Thursday at just $5.26 before Friday’s rebound.

Late Thursday, the company disclosed that Winklevoss Capital Fund invested $100 million into Gemini at $14 per share, with the transaction paid in bitcoin, CNBC reported. The investment came directly from the family office run by Cameron and Tyler Winklevoss, the twin brothers who first rose to fame after their legal battle with Mark Zuckerberg over the origins of Facebook.

Investors appeared to focus on two things: the fresh capital injection and signs that Gemini’s financial losses may be stabilizing.

The company posted a net loss of 93 cents per share for the quarter ended March 31, beating analyst expectations of a $1.03 loss per share, according to LSEG data. Revenue climbed 42% year over year to $50.3 million, driven largely by growth in services and over-the-counter trading revenue.

Still, analysts remain cautious about what comes next.

“Were it not for the founders’ $100 million strategic investment, we think Gemini would likely be down on the print as key metrics like user and revenue reacceleration fell well short of pre-IPO expectations,” Evercore analyst Adam Frisch said.

Gemini CEO Tyler Winklevoss pushed back against the skepticism, saying the market has “significantly undervalued Gemini.”

The earnings report lands during one of the toughest stretches in the company’s history.

Gemini’s current struggles trace back to the 2022 crypto meltdown. In June of that year, the exchange laid off 10% of its workforce, becoming one of the first major U.S. crypto companies hit by the industry-wide downturn.

Earlier this year, Gemini cut roughly 25% of its workforce, scaled back much of its international business, and lost several top executives, including its chief operating officer, chief financial officer, and chief legal officer. Danijela Stojanovic currently serves as interim finance chief.

At the same time, Gemini and its founders are facing a shareholder lawsuit alleging the company misled investors about its business outlook. The complaint points to strategic changes, staffing cuts, and leadership turnover that allegedly contributed to the stock’s steep decline.

Frisch said Gemini still has not provided formal revenue guidance, leaving investors with limited visibility into the company’s push into prediction markets and derivatives trading.

Founded in 2015, Gemini built its reputation by positioning itself as a safer, more regulated gateway between crypto markets and traditional finance. The platform allows users to buy, sell, and store cryptocurrencies, including Bitcoin and Ether, alongside a growing lineup of decentralized finance tokens.

As of the end of July, Gemini held more than $21 billion in assets under custody. Acting as both a strategic partner and investor, Gemini is trying to position itself as more than another crypto exchange. The company wants a larger role in the infrastructure layer that connects Wall Street to blockchain-based finance.

Friday’s surge may ease some pressure for now. Investors still want proof that Gemini can return to sustained growth after months of turmoil inside the company and a brutal stretch for crypto stocks.

Gemini founders Cameron and Tyler Winklevoss