Shares of the cryptocurrency brokerage Gemini Space Station (GEMI) experienced a significant surge after their public trading debut on Friday, initially skyrocketing more than 60% before settling to close approximately 14% above their opening price. The company, founded by brothers Cameron and Tyler Winklevoss, began trading at $37.01 following an initial public offering (IPO) that was priced at $28. Within moments of opening, the stock soared above $45, but eventually fell back to around $35 during midday trading. This trading session placed the company’s market capitalization at approximately $1.4 billion.
Immediately after the stock’s launch, trading was temporarily halted for 10 minutes due to a spike in volatility that exceeded the exchanges’ established limits. The IPO pricing itself marked an increase from an earlier estimate that ranged between $17 to $19, which was subsequently revised upward to $24 to $26. The offering ultimately raised $425 million for the company.
Gemini is seizing the opportunity to capitalize on the recent favorable trends for cryptocurrency-related IPOs, as seen with notable examples like Circle Internet Group (CRCL), which saw its shares skyrocket from an IPO price of $31 to a closing price of $83.23 on its inaugural day. Similarly, fintech crypto exchange Bullish (BLSH) saw its stock rise from an initial price of $37 to $68 in its first session. More recently, stablecoin issuer Figure Technologies (FIGR) also made headlines with a 44% jump on its first day of trading.
In the broader context, technology IPOs on the New York Stock Exchange have averaged a robust first-day return of 36.3% over the past year. According to Gemini’s IPO prospectus, the firm controls over $21 billion in assets and caters to approximately 10,000 institutional clients on a global scale. In addition to its primary crypto exchange services, the company offers a range of financial products, including a stablecoin, a U.S. credit card, and a studio dedicated to non-fungible tokens (NFTs).
In a statement regarding the IPO, the Winklevoss brothers expressed their vision for Gemini, declaring, “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 gained notoriety in the tech industry after their legal battle against Meta chief Mark Zuckerberg, alleging he misappropriated the idea for Facebook from a social networking platform they had developed.
Furthermore, a correction has been issued concerning the initial reporting of the trading venue; Gemini Space Station debuted on the Nasdaq exchange rather than the New York Stock Exchange, as was previously stated.
