- Gemini Space Station stock has plunged from $25 to $5.97.
- The company may soon become a penny stock as it may drop below $5.
- Gemini faces major challenges, including competition and the ongoing crypto market crash.
Gemini stock price crashed to a record low as concerns about its business remained amid the ongoing crypto market crash. GEMI dropped to $6.97, down from a record high of $46. Its market capitalization has slumped from a record high of over $4 billion to the current $702 million.
Gemini Space Station is Facing Major Headwinds
Gemini, a company started by the Winklevoss Twins, is facing major challenges amid the ongoing crypto market crash. Results released last week showed that its transaction revenue dropped to $26 million in the fourth quarter from $32 million in the same period. It also fell to $98 million last year from the previous $99 million.
The weakness in its transaction revenue was offset by its growth in the services segment. Its services revenue jumped to $26 million in the fourth quarter from $9.2 million in 2024. It soared to $64 million last year from $30 million a year earlier. Gemini’s annual revenue rose to $179 million from $142 million. The services segment was driven by it credit card business, which made $33 million.
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Still, the company’s business is going through some major challenges. For example, it overexpanded and found it difficult to grow in these countries. As a result, the management decided to shut some of its international markets in a bid to focus on the United States.
Gemini Space Station faces two main challenges. The first one is that competition in the crypto industry continues to rise. Most of this competition is coming from perpetual futures companies like Hyperliquid and Aster.
It is also coming from prediction marketplaces like Kalshi and Polymarket. It launched its prediction platform last year and now has 15,000 transacting users.
Gemini is also struggling as the crypto market crash continued this month, with Bitcoin and other altcoins remaining in a bear market. This retreat means that its vital transaction revenue will be under pressure in the coming quarters. Indeed, the management predicted that the trading volume this quarter will be $5.3 billion, with the monthly transacting users coming in at 606k.
The other major challenge is that the company is still losing money, raising the possibility that it will need to raise cash this year. It made a net loss of $582 millionk last year and ended the quarter with $252 million in cash and $115 million in restricted cash.
Gemini Stock Price Technical Analysis
Gemini Space Station stock chart | Source: TradingView
The daily timeframe chart shows that the GEMI stock price has slumped since its IPO last year. It has dropped from $45 to $5.97 today.
The stock has invalidated the double-bottom pattern by moving below the key support level at $6. It remains below all moving averages and the Supertrend indicator.
Therefore, the most likely scenario is where the stock continues falling, potentially to the next key support level at $4. This means that the company may become a penny stock, which happens when a stock drops below $5.
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