Gemini Files for an IPO. The Winklevoss Twins Are Behind This Crypto Exchange. — Barrons.com

By Paul R. La Monica

Now, there's another one.

Gemini Space Station, founded by Bitcoin billionaire twins Cameron and Tyler Winklevoss, joins the long list of crypto firms that are hoping to ride two very hot waves in the financial world right now — Bitcoin and initial public offerings.

Gemini confidentially announced plans for an IPO earlier this year and officially filed its paperwork with the Securities and Exchange Commission late Friday.

In the documents, Gemini disclosed its latest financials. And they can only be described as a mixed bag.

Last year, Gemini's revenue surged 45% to $142.2 million. But the company also posted a net loss of $158.5 million last year.

In the first six months of this year, the revenue picture has dimmed markedly and the net loss number has rocketed. Revenue declined 7.6%, to $68.6 million, and net losses already totaled $282.5 million.

Still, Gemini does have a handful of good numbers that are important. It has solid growth in users and the amount of assets on its platform. The company ended the first half of the this year with 523,000 monthly transacting users, up 5.7% from a year ago. Trading volume skyrocketed nearly 50% to $24.8 billion and assets on the platform rose more than 30% to $18.2 billion.

The SEC filing didn't show how many shares Gemini plans to sell or provide a price range for the stock.

In its last round of private financing, Gemini was valued at $7.1 billion And IPO research firm Renaissance Capital estimates the company could raise $400 million from the stock sale.

The IPO market has come out of hibernation in the past few months. Design software developer Figma, medical imaging company Heartflow, space exploration firm Firefly Aerospace, and drone maker AIRO all went public this summer — and all are performing well.

But it's the crypto IPOs that have wowed Wall Street. Stablecoin issuer Circle Internet Group has nearly quintupled since its debut in June. Earlier this year, online brokerage firm eToro and Galaxy Digital, the crypto firm run by Bitcoin bull Michael Novogratz, started trading.

And last week, CoinDesk owner Bullish gained nearly 85% on its first day of trading. Miami International, an options exchange operator that has dipped its toe into crypto with trading of options tied to Bitcoin prices, also had a successful debut.

It isn't clear when Gemini, which plans to list on the Nasdaq with the ticker symbol of GEMI, will begin trading. But it is clear that it could be joined by many other crypto firms going public before the end of the year or sometime next year.

Grayscale and BitGo have filed confidentially with the SEC for IPOs. And several other so-called unicorns, private companies worth at least $1 billion, may test the IPO waters soon. Kraken, Fireblocks, and Chainalysis could file later this year or in 2026.

IPOs, of course, are inherently risky. And investors are tacking on even more risk with crytpo-related companies — given how volatile Bitcoin is.

At least for now, though, investors are throwing caution to the wind.

Write to Paul R. La Monica at paul.lamonica@barrons.com

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