Gemini Shares Surge 30% After-Hours on 42% Revenue Growth and First Prediction Market Metrics
Talik Evans
- 2 min read
Image Credit: Shutterstock
Key Takeaways
- Gemini posted $50.3M in Q1 revenue, up 42%, driven by a 120% surge in services revenue and a 300% jump in credit card revenue to $14.7M, even as exchange volume fell 53%.
- First prediction market metrics since its December launch: $400K in revenue, 20,000 users, and 100 million contracts traded, with April volume up 78% month-over-month.
- Gemini secured a CFTC Derivatives Clearing Organization license and a $100M Bitcoin-funded investment from the Winklevoss brothers, with CEO Tyler Winklevoss signaling a pivot toward becoming a full markets company.
Gemini shares climbed as high as 30% in after-hours trading Thursday after the crypto exchange reported $50.3 million in total first-quarter revenue, up 42% from $35.3 million a year earlier, and disclosed its first operating metrics for the prediction market platform it launched in December.
Credit Card and Services Revenue Drive Growth as Exchange Volume Falls 53%
Gemini’s services and interest revenue, which includes its crypto-linked credit card, staking, and custodial business, was the largest contributor to quarterly growth, rising more than 120% year-over-year to $24.5 million, nearly half of total revenue. Credit card revenue alone reached $14.7 million, a 300% increase from the prior year period.
Exchange revenue moved in the opposite direction, falling 27% year-over-year to $17.2 million as total trading volume dropped to $6.3 billion from $13.5 billion a year earlier. The decline represents a 53% drop year-over-year. Despite the top-line growth, Gemini recorded a net loss of $109 million for the quarter.
Prediction Market Posts $400,000 in Debut Revenue With 100 Million Contracts Traded
Gemini reported $400,000 in prediction market revenue since launching the product in December, its first public disclosure of metrics for the segment. The company said more than 20,000 users have traded contracts on the platform, with over 100 million contracts traded in total.
The company also disclosed that April volume rose 78% from the month prior. Pure-play competitors Kalshi and Polymarket each regularly record daily volumes of between $300,000 and $500,000, according to data.
CFTC Derivatives Clearing License Positions Gemini for Futures and Perpetuals Expansion
In April, Gemini received a Derivatives Clearing Organization license from the Commodity Futures Trading Commission (CFTC), allowing it to internally manage settlement, collateral, and risk for derivatives products.
The company said the DCO license moves it closer to building what it described as a “full-stack, end-to-end marketplace” for predictions, futures, options, and perpetual contracts. CEO Tyler Winklevoss said in a statement accompanying the results:
“Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company.”
$100 Million Investment From Winklevoss Brothers Funded in Bitcoin
Alongside the quarterly results, Gemini announced a $100 million investment from Tyler and Cameron Winklevoss through their Winklevoss Capital Fund, with the investment funded in bitcoin. Gemini did not specify how it intends to use the capital.
Categories:
Talik Evans
Journalist and Financial Analyst
Talik Evans is a financial writer and crypto researcher with a growing focus on digital assets, Bitcoin markets, and blockchain innovation. Since 2021, she has been exploring the world of cryptocurrency, writing about everything from exchange comparisons to regulatory updates and security practices.