Gemini Stock Crashes 80% Post-IPO Amid Takeover Talk — SkimNews
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- Gemini Space Station (GEMI) has lost about 80% of its value since going public, with its market cap falling from roughly $4 billion at peak to $753 million as trading volume, revenue and platform assets declined.
- Gemini's second-quarter exchange revenue dropped 38% year-over-year to $12.5 million, while spot trading volume fell 66% to $3.8 billion and platform assets shrank to $8.4 billion from $18.2 billion.
- ARK Invest digital assets research director Lorenzo Valente publicly proposed that offshore perpetual-trading platform Hyperliquid acquire Gemini and use it as a regulated U.S. gateway for perpetual futures and prediction markets.
- Cameron and Tyler Winklevoss hold 94.5% of Gemini's voting power, which would simplify deal negotiations but makes any sale effectively dependent on the twins and renders a hostile takeover virtually impossible.
- Gemini's regulatory licenses, custody infrastructure and customer base could be worth more to a buyer than its shrinking spot-exchange business, with a venture capital investor noting competitors would face steep cost and time barriers to replicate the approvals organically.
- The takeover thesis fits a broader crypto M&A pattern — Keyrock acquired BlockFills' trading assets in July for licenses and institutional clients, Ondo has been exploring a deal worth up to $500 million, and LMAX and B2C2 have also explored strategic transactions.
Why it matters: Gemini's collapse to a $753 million valuation shows how steeply the post-IPO crypto market has repriced regulated platforms, yet its U.S. licensing footprint — which took years to build — could make it a cheap bolt-on for a buyer like Hyperliquid. With the Winklevoss twins controlling 94.5% of votes, the fate of any deal rests with two people, leaving shareholders no route to force a sale even if the price stays depressed.
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