Gemini Crypto Exchange Reports $107.7 Million Loss for Fourth Consecutive Quarter, Stock Drops Over 7% After Hours Due to Larger-than-Expected Losses
Cryptocurrency platform Gemini, founded by the Winklevoss twins, reported a net loss of $107.7 million for the second quarter of 2026, marking its fourth consecutive quarter of losses.
Revenue increased by 37% year-on-year to $45.5 million, exceeding expectations, but exchange revenue fell by 38% to $12.5 million, with trading volume dropping from $11.3 billion to $3.8 billion.
Credit card revenue surged by 231% to $16.2 million, staking revenue grew by 50% to $4 million, and overall service revenue saw a significant increase.
CEO Tyler Winklevoss stated that the company still has work to do, but this quarter reflects ongoing efforts to reduce operating costs and diversify revenue.
Operating expenses decreased by 15% quarter-on-quarter to $122.4 million, and the net loss narrowed by 19% year-on-year.
Gemini went public in September 2025, and since then, the crypto market has retreated from its highs, with the company continuing to push for cost optimization and business diversification.
In the market, the larger-than-expected loss led to a drop of over 7% in stock price after hours, with investors focusing on the progress of revenue diversification, benefiting non-trading income growth while traditional exchange models reliant on crypto trading volume face pressure.
Source: Public Information
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Gemini, founded by the Winklevoss brothers, has faced ongoing pressure from the crypto bear market since its 2025 IPO, previously reporting consecutive losses. This time, it offset trading declines through service revenues from credit cards and staking, continuing its transition from a pure exchange to a comprehensive platform.
On the capital front, the company is reducing its reliance on trading volume through cost-cutting and diversification, using funds to maintain operations and expand into new businesses such as prediction markets and custody, aiming for a more stable revenue structure amid market volatility.
Similar cases can be seen with publicly listed crypto companies like Coinbase, which buffer against bear markets through subscription and service revenues, currently transitioning from trading-driven to multi-revenue models.
This essentially represents a restructuring of the industry chain: crypto exchanges are shifting from reliance on trading fees to services and financial products, with changes in revenue structure determining cyclical resilience.
ABAB News · Cognitive Law
Service revenue determines survival space when trading volume declines
Continuous losses are a necessary cost during the transition period
The speed of diversification is more decisive for valuation than revenue growth