Gemini shares dropped more than 7% in after-hours trading on Thursday after the crypto exchange reported a $107.7 million net loss for the second quarter, even as total revenue climbed 37% year over year.
The company posted $45.5 million in total revenue, up from $33.3 million a year earlier. Its net loss narrowed 19% from $133.2 million in the same period last year. CEO Tyler Winklevoss said, "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."
Gemini’s credit card revenue jumped 231% to $16.2 million, while staking revenue grew 50% to $4 million. However, core exchange revenue fell 38% to $12.5 million as total trading volume declined to $3.8 billion from $11.3 billion a year earlier.
The company’s young prediction market generated $500,000 in revenue, up slightly from $400,000 after its December launch, while event contract volume rose 93% quarter over quarter. Gemini also activated its derivatives clearinghouse earlier this month after receiving CFTC approval in April, clearing the way for potential crypto futures, options and perpetual contracts.
Monthly transacting users increased 11% year over year, but assets on the platform fell to $8.4 billion from $18.2 billion as major assets like bitcoin lost 50% of their value. Gemini shares are now trading near all-time lows below $4.
