Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is set to make a significant move in the financial markets by preparing for an initial public offering (IPO) in New York this week. The exchange aims to raise up to $317 million through this listing, with Nasdaq stepping in as a strategic partner. According to sources reported by Reuters, Nasdaq has committed to purchasing $50 million worth of shares in a private placement during the IPO phase, solidifying a partnership between the two entities.
This collaboration will extend benefits to both parties; Nasdaq’s clients will gain access to Gemini’s custody and staking services. In turn, Gemini’s institutional users will be able to leverage Nasdaq’s Calypso platform to manage and track collateral. The IPO is projected to start trading under the ticker “GEMI” by the end of the week, although the exact timing could be influenced by market conditions.
The news of Gemini’s IPO comes amid a resurgence in U.S. equity capital markets, which has seen several high-profile listings capturing investor attention. Recent debut performances from companies like design software developer Figma and aerospace firm Firefly Aerospace have revitalized confidence in the IPO pipeline. This trend is not limited to traditional firms; digital asset companies have also been active in pursuing public listings this year. Other notable listings include Circle (CRCL) and Bullish (BLSH), both making impactful debuts in the market.
If successful, Gemini will join the ranks of publicly traded crypto exchanges, positioning itself alongside Coinbase (COIN) and Bullish, with Coinbase being the first digital asset platform to earn a spot in the S&P 500. Current data from Kaiko indicates that Gemini stands out as one of the largest U.S.-based cryptocurrency exchanges, boasting $21 billion in assets under custody and a lifetime trading volume surpassing $285 billion. The company operates a diverse business model, including over-the-counter trading and a crypto-backed credit card, while supporting significant tokens like Bitcoin and Ethereum. Transaction fees serve as Gemini’s primary revenue source.
However, recent financial disclosures to the U.S. Securities and Exchange Commission reveal that Gemini reported a net loss of $282.5 million on revenues of $68.6 million for the first half of the year, compared to a loss of $41.4 million on revenues of $74.3 million during the same timeframe in the previous year. The Winklevoss brothers, often referred to as the “Bitcoin twins,” have emerged as early billionaires in the digital asset industry following their involvement in cryptocurrency after their settlement with Facebook in 2008.
As Gemini prepares for its listing, the market will be closely watching how it navigates the complexities of going public in the evolving landscape of digital assets.
