Shares in cryptocurrency brokerage Gemini Space Station (GEMI) saw a dramatic surge on their first day of public trading, rising over 60% shortly after opening. However, those gains were subsequently pared down to approximately 25%. The exchange, which was established by brothers Cameron and Tyler Winklevoss, began trading at $37.01 after an initial public offering (IPO) that was priced at $28. Within minutes, the share price soared past $45 before retracting to around $35 mid-day, placing the company’s market valuation at around $1.5 billion.
The excitement surrounding the stock prompted a trading halt just 10 minutes after the market opened; this was due to a volatility spike that exceeded the exchange’s pre-established limits. The IPO’s initial pricing had already been adjusted upwards from an original estimate of $17 to $19, then revised again to between $24 and $26, ultimately raising $425 million.
Gemini’s ambitions appear to be timed with a recent surge in market interest and valuation for cryptocurrency-related companies. In June, Circle Internet Group, which specializes in stablecoin infrastructure, priced its IPO at $31 but closed its first trading day at $83.23, marking an impressive first-day increase of about 80%. Similarly, in August, fintech exchange Bullish priced its IPO at $37 and ended its debut session at $68. More recently, Figure Technologies, another stablecoin issuer, experienced a 44% gain upon its debut.
According to data, tech IPOs on the New York Stock Exchange have averaged first-day returns of 36.3% over the past year. Geminiprecisely stands out in this trend, boasting over $21 billion in assets under management and catering to around 10,000 institutional clients globally, as highlighted in the firm’s IPO prospectus. Besides its core trading platform, Gemini offers a stablecoin product, a US credit card, and a studio tailored for non-fungible tokens (NFTs).
In a statement regarding the IPO, the Winklevoss brothers articulated their vision: “We built Gemini as a bridge to the future of money. Whether you’re in the middle of a bustling metropolis or in the middle of a remote jungle, the Gemini app will give you access to the future of money and finance.” The Winklevoss twins initially garnered attention in the tech industry after a high-profile lawsuit against Meta’s Mark Zuckerberg, alleging that he had taken their ideas for the social networking site Facebook.
