The growth was driven by OTC trading, services, and strong performance from its crypto-linked credit card business. The company also revealed that its prediction market platform generated $400,000 in revenue since launching in December.
Gemini Stock Soars After Massive Revenue Growth
Gemini shares surged by as much as 30% in after-hours trading on Thursday after the crypto exchange reported strong first-quarter revenue growth and revealed new details about its expanding prediction markets business.
Gemini share price over the past 24 hours (Source: Google Finance)
The company posted total revenue of $50.3 million for the quarter, which is a 42% increase compared to the $35.3 million that was generated during the same period last year. The growth was largely driven by expanding service offerings, over-the-counter (OTC) trading activity, and strong performance from the firm’s crypto-linked Gemini Credit Card business.
One of the biggest updates from the earnings report was Gemini’s first disclosure of revenue from its in-house prediction market platform, which launched in December. The company said the segment generated $400,000 in revenue so far, while more than 20,000 users have traded contracts on the platform.
Gemini also revealed that over 100 million contracts have already been traded since launch. Larger prediction market platforms like Polymarket and Kalshi reportedly see daily trading volumes ranging between $300,000 and $500,000 on a regular basis.
The company also provided an optimistic update for April, as trading volume rose another 78% compared to the previous month. Gemini CEO Tyler Winklevoss said the company has reached several major product and regulatory milestones that position it to evolve beyond a traditional crypto exchange into a broader financial markets platform.
Gemini Q1 financial results (Source: Gemini)
Part of that transition includes Gemini’s expansion into derivatives trading. In April, the company secured a Derivatives Clearing Organization license from the Commodity Futures Trading Commission, which allows Gemini to internally manage collateral, settlement, and risk for derivatives products. The exchange said this regulatory approval brings it closer to creating a full-stack marketplace supporting predictions, futures, options, and perpetual contracts.
Gemini also announced a $100 million investment from founders Tyler Winklevoss and Cameron Winklevoss through their Winklevoss Capital Fund, with the investment reportedly funded in Bitcoin.
Despite the strong revenue growth and expansion efforts, Gemini still reported a net loss of $109 million for the quarter. The company’s core exchange business also showed signs of weakness as crypto trading activity slowed. Exchange revenue declined 27% year over year to $17.2 million, while total trading volume dropped sharply from $13.5 billion a year earlier to $6.3 billion during the quarter.
However, Gemini’s services and interest revenue segment were the company’s strongest area of growth. Revenue from services like staking, custody, and credit cards surged more than 120% year over year to $24.5 million, accounting for nearly half of the company’s total quarterly revenue. Credit card revenue alone reached $14.7 million.
