The Gemini IPO will be the next big thing to watch this year as one of the biggest companies in the crypto market goes public. This article looks at some of the key details to know from its recently launched S1 document.
Gemini IPO Details
In a statement on Monday, Gemini said that it would raise $317 million in its upoming IPO. It will seek a valuation of $2.2 billion, much lower than its last known valuation of $7.1 billion.
The S1 revealed that the company has over $18 billion in custody and has offered its services to over 1.5 million customers in its lifetime.
Its finances showed that it made $68.6 million in the first six months of the year, much lower than the $74.2 million it made in the same period lat year. This makes it a much smaller brand than companies like Coinbase and Bullish.
Gemini’s net loss jumped to over $282 million in this period from $41.2 million in the same period last year. This loss was much bigger than the $158 million that it lost in the full financial year of 2024.
Gemini’s deteriorating revenues came even as its number of users and assets jumped in its platform. Its monthly transacting users rose to 523,000, while the trading volume rose from $16.6 billion to $24.8 billion.
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Will GEM Stock be a Good Buy?
Recent performance by crypto IPOs like Circle and Bullish shows that there is a robust appetite for these companies. Circle stock price nearly doubled on the first day, while Bullish jumped by double digits.
GEM stock price will also likely do well, especially because it is associated with the Winklevoss Twins. However, its jump will likely be short-lived as the company faces major challenges.
The first main challenge is that its business mostly depends on transactions and has little recurring segment. As such, its revenue and profitability will always depend on the crypto market cycle.
This is unlike a company like Coinbase, which has boosted is non-transactional volume. It is now generating significant revenue through stablecoins, blockchain technology via Base, crypto custody, and subscriptions.
The other challenge is that Gemini is a small player in an industry dominated by the likes of Upbit, Binance, Bybit, Coinbase, and OKX. It has struggled to gain market share because it normally offers limited coins than these other companies.
Most importantly, there will be significant dilution risks as the company is still making substantial losses.
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