Third quarter loss of $58.6 million is better than expected, revenue and trading volume both decline, can the Winklevoss brothers' previous $100 million investment alleviate the cash burn pressure?

Written by: Olga Kharif, Bloomberg

Translated by: Saoirse, Foresight News

Gemini Space Station Inc. has recorded losses for five consecutive quarters since going public, with a third quarter loss of $58.6 million, representing a loss of 46 cents per share. The company’s revenue fell 19% to $40.9 million, with spot trading volume plunging 73% year-on-year; total operating expenses decreased 30% year-on-year to $119.9 million. As of the end of this quarter, Gemini holds $194.1 million in cash, down from $252.2 million at the end of last year. Analysts are closely monitoring its cash burn rate to gauge the company’s remaining operational lifespan.

This digital asset platform, founded by billionaire brothers Tyler Winklevoss and Cameron Winklevoss, went public last year, shortly before the crypto market retreated from its historical highs; now, it is facing its fifth consecutive quarter of losses post-IPO. The company recorded a third quarter loss of $58.6 million, or 46 cents per share, which is an improvement over the Bloomberg-polling analysts’ prior prediction of a loss of 67 cents per share; in the same period last year, Gemini lost $159.5 million. Revenue dropped 19% year-on-year to $40.9 million, also better than market expectations. The New York-based company’s stock rose over 5% in after-hours trading. However, compared to the IPO issue price in September 2025, the stock is down nearly 90% overall.

In October, Tyler Winklevoss and Cameron Winklevoss attended the Token2049 conference in Singapore, photographer: Ore Huiying / Bloomberg

Although Gemini is far smaller than exchanges like Coinbase, OKX, and Binance, the Winklevoss twins are among the most recognized advocates in the crypto industry. In the recently concluded midterm elections in the United States, they were major donors in the industry, helping to promote the implementation of industry-friendly regulatory rules.

As Gemini released its financial report, digital asset prices weakened again, due to U.S. inflation data surpassing expectations, which has cooled market risk appetite, and concerns that the Democratic Party may introduce unfavorable policies for the industry after assuming control of Congress. A significant part of crypto exchanges' revenue comes from trading fees, and low coin prices typically suppress trading activity. Gemini stated in a Thursday announcement that spot trading volume declined by 73% year-on-year. Meanwhile, total operating expenses dropped 30% year-on-year to $119.9 million, primarily due to reductions in personnel costs and cuts in marketing spending.

Chief Executive Officer Tyler Winklevoss stated, "Operating expenses have decreased for three consecutive quarters. While we invest resources to expand our business, we will continue to be prudent in where we allocate funds. We are aware of the challenges ahead and are determined to do a good job."

Since Gemini went public in October 2025, its stock price has plummeted significantly and has been languishing at low levels for a long time.

To reduce reliance on trading fee income, Gemini is laying out new businesses such as prediction markets. This segment reported quarterly revenue of $800,000, a 52% increase quarter-on-quarter. As of the end of the quarter, the company had cash of $194.1 million, down from $252.2 million at the end of last year. Analysts are continuously tracking its cash consumption to determine how long the company can continue operations without additional investment from the Winklevoss brothers.

Truist Securities stock analyst Matthew Coad stated before the earnings report: "I think this pushes the brothers to continue acting as a last financial backstop, to get to the next crypto bull market. Our model does not factor in their subsequent capital injection, but the company's prospects remain highly uncertain."

Earlier this year, the company laid off about one third of its workforce, with several executives leaving. In May, the two brothers injected $100 million into the continuously loss-making exchange. Additionally, the platform encountered a surge in credit card fraud this year, with Gemini stating that the amount of credit card write-offs rose due to previously exposed fraud incidents in the third quarter.

Just a week before Gemini released its earnings report, larger competitor Coinbase submitted its earnings report, returning to profitability after a year, but also saw a decline in quarterly revenue.