Gemini stock surges after Q1 revenue rises 42%

Gemini’s stock rose as much as 30% in after-hours trading Thursday after the exchange reported $50.3 million in total revenue for the first quarter, a 42% increase from $35.3 million a year earlier. The company also disclosed $400,000 in revenue from its prediction-market product since its December launch.

The revenue increase reflected growth in services, over-the-counter trading and the crypto-linked Gemini Credit Card. Gemini said trading volume in April rose 78% month over month.

The firm provided the first operating metrics for its in-house prediction market: more than 20,000 users have traded contracts and over 100 million contracts have changed hands. The company said the $400,000 in prediction-market revenue is small compared with volumes on larger prediction platforms but showed steady user engagement since launch.

In April, Gemini received a Derivatives Clearing Organization license from the Commodity Futures Trading Commission. The license allows the firm to manage settlement, collateral and risk internally for derivatives products, and the company said it supports plans to offer markets for prediction contracts, futures, options and perpetual contracts.

Founders Tyler and Cameron Winklevoss committed an additional $100 million to the business through their Winklevoss Capital Fund. The investment was funded in bitcoin and the company said the capital will support product development and market expansion.

Despite higher revenue, Gemini recorded a net loss of $109 million for the quarter. Exchange revenue fell 27% year over year to $17.2 million as total trading volume declined to $6.3 billion from $13.5 billion a year earlier. Services and interest revenue, which includes credit card income, staking and custody fees, rose more than 120% to $24.5 million, nearly half of total revenue. Credit card revenue alone totaled $14.7 million, a 300% increase from the prior year.

CEO Tyler Winklevoss wrote in a statement, “Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company.”

Gemini launched the prediction market in December and is disclosing early usage and revenue figures alongside the DCO license and the founders' capital commitment as it broadens its product offerings beyond spot crypto trading.