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

Cryptocurrency exchange Gemini’s first-quarter revenue reached $50.3 million, up 42% year over year. Although losses were caused by a contraction in trading volume, a diversification and transformation strategy sent the after-hours share price soaring by 30%.

As spot cryptocurrency trading hits a slump, Gemini—founded by the Winklevoss twins—has carved out a path forward with a “diversification and transformation” approach. According to the latest released first-quarter financial report, Gemini drove a surge in its after-hours stock price by as much as 30%, supported by strong performance with 42% year-over-year revenue growth and impressive data from its newly disclosed prediction market.

The financial report shows that Gemini’s total revenue in the first quarter reached $50.3 million, up 42% from $35.3 million in the same period last year. This strong growth momentum was mainly attributed to growth in its in-house services and over-the-counter (OTC) business, as well as a major breakout in the performance of its Gemini credit card tied to cryptocurrencies.

Prediction market gets its first real foothold, transforming into an “all-direction market”

Notably, since its launch in December last year, Gemini has for the first time separately listed operating figures for its “prediction market” in its financial report. This business contributed $400,000 in revenue.

Although this figure is still hard to match prediction-market giants such as Polymarket or Kalshi (daily trading volume between $300,000 and $500,000), Gemini emphasized that there are already more than 20,000 users trading on the platform, and total contract trading volume has already surpassed 100 million contracts. In addition, the company also released an impressive early showing for April: prediction-market trading volume surged another 78% compared with the previous month, and its growth potential should not be underestimated.

In a statement, Gemini CEO Tyler Winklevoss said: “We have achieved multiple product and regulatory milestones, which allows Gemini to transform from a simple cryptocurrency company into a markets company.”

Gemini is currently working to reduce its dependence on spot trading and extend its reach into the derivatives market. In April this year, the company successfully obtained a derivatives clearing organization (DCO) license issued by the U.S. Commodity Futures Trading Commission (CFTC), allowing Gemini to handle derivatives clearing, collateral, and risk management internally without relying on third-party institutions.

Gemini revealed that the DCO license will help the company accelerate building a “one-stop, full-end trading platform” covering prediction markets, futures, options, and perpetual contracts.

To demonstrate absolute confidence in the company’s outlook, Tyler Winklevoss and Cameron Winklevoss also announced at the same time that they will inject $100 million into Gemini via their Winklevoss Capital Fund, with the entire amount paid in Bitcoin.

Trading shrinks and worries emerge—staking and credit cards become the “golden geese”

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

In a situation where trading volume is weak, the “golden geese” that truly carry the business are services including credit cards, staking, and asset custody. Revenue from these surged 120% to $24.5 million, accounting for nearly half of total revenue. Even credit card business alone contributed $14.7 million, up 300% from the same period last year, becoming the biggest contributor to the company’s ability to break through despite the downturn in the first quarter.

• This article is reprinted with permission from: 《BlockBeats》
• Original title: 《Revenue Surges 42%, Prediction Market Gets Its First Real Foothold! Gemini’s After-Hours Share Price Soars 30%》
• Original author: Block Sister MEL