Gemini sells overseas businesses as Winklevoss exchange cuts costs: Report

The deal follows Gemini's February plans to exit the UK, European Union and Australian markets and eliminate about 25% of its global workforce. Founded by Cameron and Tyler Winklevoss, the company retained its US and Singapore businesses as it seeks to reduce expenses and move toward profitability.

Strategic Shift

Gemini is repositioning itself as a multi-product crypto and financial markets platform, expanding into prediction markets, equities and regulated derivatives. This comes as declining spot trading activity pressures its traditional exchange business.

The company introduced event contracts through Gemini Predictions, launched commission-free US stock and ETF trading, and secured regulatory approval for affiliate Gemini Olympus to operate as a derivatives clearinghouse.

Revenue Diversification

In the second quarter, Gemini generated $45.5 million in total revenue, up 37% year-over-year. Services revenue climbed 149% to $23.5 million, while exchange revenue fell 38% to $12.5 million due to lower crypto trading volumes.

Services revenue and interest income accounted for 59% of net revenue, compared with 50% in the first quarter. Credit card revenue increased 231% to $16.2 million, while staking revenue grew 50% to $4 million.

Expansion Plans

Gemini is looking to build on that growth by expanding distribution beyond its own platform. In August, it signed a letter of intent with Apex Fintech Solutions to make its regulated crypto prediction markets available through brokerage firms.

Gemini Titan would serve as the exclusive regulated venue for crypto event contracts under the proposed arrangement. The company continues to pursue a futures commission merchant application to include regulated US crypto perpetual futures in its offerings.