Gemini reported a second-quarter net loss of $107.7 million on August 13 and its shares fell by over 7% in after-hours trading. This is the clearest sign so far that a crypto downturn in the marketplace is now damaging exchanges that continue to generate revenue from trading fees.
The damage was primarily to Gemini’s business model. Trading volume on the main exchange of Gemini fell from $11.3 billion a year ago to $3.8 billion now, while total assets on the platform also decreased, from $18.2 billion to $8.4 billion because bitcoin and other cryptocurrencies had lost about half their price during the same time period.
For an industry that was celebrating record highs in 2025, this quarter provided a reminder of how fast the fee revenue disappears when prices change.
A trading business shrinking with the market
The exchange revenue is indeed telling a different story: there is a fall of 38% to just $12.5 million because customers have been trading less. In fact, the number of monthly transacting users went up by 11% year on year. So, customers didn’t stop trading but just weren’t motivated to trade as much.
This pressure is not specific to Gemini. When the firm released its first earnings statements as a public company, the entire sector was facing a downturn. As noted by one Goldman Sachs analyst, a diminishing crypto market cap “weighs on asset level-driven revenue streams.” Nearly one year later, this same force is at work on Gemini’s earnings numbers.
Credit cards and staking pick up the slack
The company intends to create a business independent of fluctuations in Bitcoin prices. Total revenue grew by 37% to $45.5 million from $33.3 million a year earlier, and net loss decreased by 19% from $133.2 million. Credit card revenue stood out, having increased by 231% to $16.2 million, while staking has generated $4 million, an increase of 50%.
Gemini’s prediction market, which was launched in December 2025, made $500,000, an increase from $400,000. However, the event contracts traded increased by 93% compared to the first quarter, and total contracts went beyond 225 million.
The company announced the launch of its own derivatives clearinghouse this month after the Commodity Futures Trading Commission approved it in April, allowing it to clear the contracts by itself and eventually include futures, options, and perpetuals. Chief Executive Tyler Winklevoss said in a statement:
“While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue,” Chief Executive Tyler Winklevoss said in a statement.
President Cameron Winklevoss puts it more bluntly:
“The Gemini platform has changed more in the past nine months than it did in the past decade.”
Coinbase and Robinhood chase the same pivot
The pivot is a contest, and Gemini is not in the lead. Coinbase revealed its Q2 earnings in July, laying claim to the highest-ever share of crypto trading volume at 10.3%, up from 9.1% in Q1, and posting a 14th consecutive quarter of adjusted earnings despite “challenging market conditions.”
Its prediction-market contracts and revenue surged 106% quarter-on-quarter, and 88% of the firm’s net income now comes from sources other than bitcoin spot trading. In fact, Fortune noted that Coinbase generated almost 40 times more revenue than Gemini in the third quarter of 2025.
Robinhood, which has also disclosed its quarterly results as of June 30, has adopted a similar trajectory by combining crypto trading, prediction markets, and stock trading in a single application.
In July, Gemini moved directly into this space by providing commission-free stock trading in the U.S., thus transitioning to a wider marketplace. Earlier reports indicated that the company downsized its workforce by 25% and ceased operations in the U.K., European Union, and Australia to “double down on America,” and made some leadership changes.
Where the stock sits now
Gemini Space Station shares are currently trading at close to an all-time low of $4, which is quite a dip from the initial public offering price of $28 in September, which gave the company a value of about $3.3 billion. The stock also hit a high of $45.89 on the first day. Investors who took the Winklevoss twins at their word that Bitcoin would be worth $1 million in 10 years have been given a rude awakening for their efforts.
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