Gemini Reports $107.7 Million Loss as Crypto Trading Volume Drops 66%

TLDR

• Gemini posted a $107.7 million net loss in Q2, its fourth straight quarterly loss since going public.
• Total revenue rose 37% year over year to $45.5 million, driven by services growth.
• Spot trading volume dropped 66% year over year to $3.8 billion.
• Credit card revenue jumped 231% to $16.2 million, while transaction losses hit $20.1 million.
• Assets on the platform fell 54% to $8.4 billion.

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Gemini Space Station posted a $107.7 million net loss for the second quarter. This marks the fourth straight quarterly loss since the company’s Nasdaq listing.

The loss covers the period ending June 30, 2026. It follows a $133.2 million loss in the same quarter last year.

Total revenue rose 37% year over year to $45.5 million. The gain came mostly from growth in services, not core trading.

Spot trading volume fell 66% year over year to $3.8 billion. A year ago the figure stood at $11.3 billion.

Trading Revenue Slows While Other Business Grows

Transaction revenue fell 15% year over year to $17.8 million. Exchange revenue dropped 38% to $12.5 million.

Retail spot volume fell 53% to $700,000. Institutional volume dropped 68% to $3.1 billion.

Services revenue rose 149% to $23.5 million. Credit card revenue jumped 231% to $16.2 million.

Staking revenue increased 50% to $4 million. Over the counter revenue rose to $4.7 million from $611,000.

Credit Losses and Asset Declines

The company reported $20.1 million in transaction losses. That is up from $3.6 million a year earlier.

A $16.1 million provision covered expected credit losses on the credit card portfolio. About $10 million of that came from accounts linked to fraud activity found in the first quarter.

Gemini said it added fraud detection and account monitoring tools. Management said the loss was tied to one group of accounts and does not point to wider problems in the credit business.

The company also recorded a $60.7 million loss on crypto assets and receivables. This was partly balanced by a $35.7 million gain on related party crypto loans.

Assets on the platform fell 54% year over year to $8.4 billion. A year earlier the total was $18.2 billion.

Monthly transacting users rose 11% year over year to 580,000. That figure slipped 2% compared to the first quarter.

Gemini is expanding beyond crypto trading. Prediction markets brought in $524,000 in revenue during the quarter, and event contracts traded rose 93% from the first quarter.

The company launched commission free stock trading for eligible U.S. customers in July. Cumulative prediction market contracts have now passed 225 million.

The company’s clearinghouse, Gemini Olympus, became a registered derivatives clearing organization on April 29. It went live on August 4, letting Gemini settle its own prediction contracts.

Management will discuss the quarter on an earnings call at 8:30 a.m. ET on August 14. Gemini remains a defendant in an investor lawsuit tied to its IPO disclosures, and the case is still active in federal court.

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Source: https://blockonomi.com/gemini-reports-107-7-million-loss-as-crypto-trading-volume-drops-66/