Gemini Space Station (GEMI), the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has made a splash in its Nasdaq debut, signaling strong investor interest in the crypto sector. The stock's performance reflects a broader trend of renewed enthusiasm for crypto-related equities, with Gemini joining the ranks of publicly traded crypto exchanges like Coinbase and Bullish.

Strong Market Debut

Shares of GEMI surged in their market debut on Friday, briefly topping $40 before settling near $35 in the afternoon. This represents a significant increase of 24% on the day, giving the company a market capitalization of approximately $1.3 billion. The initial public offering (IPO) was priced at $28 per share, well above the initial target range of $17 to $19, and even higher than the revised range of $24 to $26.

Bloomberg News reported that the stock was estimated to open at $34 per share, around 21% above its IPO price. Gemini offered 15,178,572 shares of class A common stock. The strong demand for crypto-related stocks was underscored by the raising of the price range.

A Successful IPO

Gemini's IPO raised $425 million, with the company offering 15.2 million shares. The IPO was reportedly oversubscribed by more than 20 times, leading bankers to halt new orders and cap the proceeds. Nasdaq also committed to purchasing $50 million worth of stock in a private placement at the IPO price. Furthermore, a portion of the shares was set aside for long-standing users, employees, close associates, and retail investors.

The company's decision to limit proceeds, despite heavy demand, highlights its focus on maximizing pricing while maintaining control over its equity base. The Winklevoss twins retain significant control, owning 75.37 million shares through Winklevoss Capital Fund LLC and holding 94.5% of the company's voting power.

Background and Financials

Founded in 2014, Gemini aims to provide a trusted and secure platform for buying, selling, and storing crypto assets. The company has expanded its offerings to include a derivatives exchange, staking services, an over-the-counter trading desk, institutional-grade custody, a stablecoin, a credit card, and a Web3 studio for NFTs.

While Gemini is not among the largest crypto exchanges by trading volume, it has a strong reputation for security and regulatory compliance. It ranks 35th among centralized crypto exchanges, with a 0.3% global share. However, it holds a stronger position in custody, consistently ranking third behind Coinbase and BitGo.

Gemini's financial performance has seen fluctuations. In 2024, assets doubled to $18.2 billion, trading volume tripled to $38.6 billion, and revenue increased by 45% to $142.2 million. However, the first half of 2025 saw a decline in revenue to $68.6 million and a significant increase in net losses to $282.5 million.

Market Context

Gemini's successful IPO comes amid a broader resurgence of interest in crypto companies going public. Other crypto firms, including BitGo, Grayscale, Kraken, and Figure, are also seeking to tap into the public markets. The strong debuts of Circle and Bullish earlier this year have further fueled this trend.

The IPO market is experiencing its busiest week in years, with Gemini being one of four companies debuting. The company's performance will be closely watched as an indicator of investor appetite for crypto-related investments.