Gemini Exchange Revenue Surges 42%! Credit Cards and Prediction Markets Boom, Stock Prices Soar After Hours

Cryptocurrency exchange Gemini’s first quarter revenue reached $50.3 million, a 42% increase year-over-year. Despite a decline in trading volume leading to losses, a diversified transformation strategy drove the stock price up by 30% after hours.

Amid a downturn in spot cryptocurrency trading, Gemini, founded by the Winklevoss brothers, has carved out a path through “diversified transformation.” According to the latest first-quarter financial report, Gemini’s strong performance with a 42% revenue increase, along with eye-catching data from its newly disclosed prediction market, caused the stock to surge by as much as 30% after hours.

The financial report shows that Gemini’s total revenue for the first quarter reached $50.3 million, up from $35.3 million in the same period last year. This robust growth momentum is mainly attributed to increased services, over-the-counter (OTC) trading, and a breakout in Gemini’s cryptocurrency-related credit card business.

Prediction Market Debuts, Transforming into a “Comprehensive Market”

Notably, since its launch in December last year, Gemini has for the first time listed the operational figures of its “prediction market” separately in its financial report, contributing $8B in revenue.

Although this figure is still difficult to compare with prediction market giants like Polymarket or Kalshi (which have daily trading volumes between $300k and $500k), Gemini emphasizes that over 20k users are trading on the platform, with total contract trading volume exceeding 100 million contracts. Additionally, the company has also released impressive April results, with prediction market trading volume increasing by 78% compared to the previous month, indicating significant growth potential.

Gemini CEO Tyler Winklevoss stated in a release: “We have achieved multiple product and regulatory milestones, enabling Gemini to transform from a pure cryptocurrency company into a market company.”

Gemini is currently working hard to reduce reliance on spot trading and expand into the derivatives market. In April, the company successfully obtained a Derivatives Clearing Organization (DCO) license from the U.S. Commodity Futures Trading Commission (CFTC), allowing Gemini to internally handle derivatives clearing, collateral, and risk management without relying on third-party institutions.

Gemini revealed that the DCO license will accelerate the company’s development of a “one-stop full-stack trading platform” covering prediction markets, futures, options, and perpetual contracts.

To demonstrate absolute confidence in the company’s prospects, Tyler Winklevoss and Cameron Winklevoss also announced that they would inject $100 million into Gemini through their Winklevoss Capital Fund, paid entirely in Bitcoin.

Trading Decline Sparks Concerns, Staking and Credit Cards Become “Golden Geese”

Despite strong revenue growth momentum, the financial report also reveals pains in the industry’s transformation. Due to sluggish cryptocurrency trading, Gemini’s trading volume in the first quarter halved from $13.5 billion last year to $6.3 billion, leading to a 27% decline in exchange-related revenue. As a result, Gemini’s net loss for the first quarter reached $109 million.

In the face of low trading volume, the “golden geese” supporting the overall business are services and interest from credit cards, staking, and asset custody, which saw a 120% surge to $24.5 million, nearly half of total revenue. The credit card business alone contributed $14.7 million, a 300% increase compared to the same period last year, becoming the biggest driver of the first quarter’s performance against the downturn.

• This article is reprinted with permission from: “BlockBeats”
• Original title: “Revenue Surges 42%, Prediction Market Debuts! Gemini’s After-Hours Stock Price Soars 30%”
• Original author: Block Sister MEL