The company Gemini reported a net loss for the second quarter of $107.7 million, and its shares fell more than 7% in over-the-counter trading. This is the clearest sign yet that the downturn in the cryptocurrency market is harming exchanges that continue to rely on trading fees for revenue.
The primary damage was inflicted on Gemini's business model. Trading volume on the core Gemini exchange fell from $11.3 billion a year ago to $3.8 billion now, and total assets on the platform also shrank from $18.2 billion to $8.4 billion, as Bitcoin and other cryptocurrencies lost roughly half their value over the same period.
For an industry that celebrated record highs in 2025, this quarter served as a reminder of how quickly commission revenue can vanish when prices change.
Trading Business Shrinks Along with the Market
In fact, the exchange's revenues tell the opposite story: a 38% drop to just $12.5 million is attributed to a decline in customer trading volumes. Actually, the number of users making trades monthly increased by 11% compared to last year. So, clients haven't stopped trading; they've simply lost motivation for more active operations.
This pressure isn't unique to Gemini. As the company published its first financial results as a public company, the entire sector was experiencing a downturn. As one Goldman Sachs analyst noted, the shrinking market capitalization of cryptocurrencies "puts pressure on revenue streams that depend on asset levels." Nearly a year later, the same force is impacting Gemini's financial performance.
Credit Cards and Staking Compensate for the Gap
The company intends to build a business, independent of Bitcoin price fluctuations. Total revenue grew by 37% to $45.5 million from $33.3 million a year earlier, and the net loss shrank by 19% to $133.2 million. Credit card revenues stood out, increasing by 231% to $16.2 million, while staking brought in $4 million, 50% more than the year before.
Gemini's prediction market, launched in December 2025, generated $500,000, which is $400,000 more than the previous year. However, event contract trading volume was down 93% compared to the first quarter, and the total number of contracts is 225 million.
This month, the company announced the launch of its own derivatives clearinghouse after the Commodity Futures Trading Commission approved it in April. This will allow Gemini to clear contracts independently and eventually include futures, options, and perpetual contracts. CEO Tyler Winklevoss stated in his announcement:
"While we as a company still have much work to do, this quarter's results reflect our ongoing efforts to reduce operating expenses and diversify revenue sources," said CEO Tyler Winklevoss in his statement.
Cameron Winklevoss expressed himself even more directly:
"In the last nine months, the Gemini platform has changed more than in the previous decade."
Coinbase and Robinhood Aim for the Same Pivot
The strategic shift is a competition, and Gemini isn't leading yet. Coinbase published its Q2 financial results in July, claiming a record share of cryptocurrency trading volume at 10.3%, up from 9.1% in Q1, and showing its fourteenth consecutive quarter of adjusted profit despite "challenging market conditions."
Prediction market trading and the company's revenue grew by 106% compared to the previous quarter, and 88% of the firm's net profit now comes from sources other than Bitcoin. Furthermore, as Fortune noted, Coinbase generated nearly 40 times more revenue than Gemini in Q3 2025.
Robinhood, which also published its quarterly results as of June 30, has adopted a similar strategy, combining cryptocurrency trading, prediction markets, and stock trading in a single app.
In July, Gemini directly entered this market by offering commission-free stock trading in the US, thereby expanding its presence into the broader market. It was previously reported that the company reduced its staff by 25% and ceased operations in the UK, European Union, and Australia to "double down on America," and also made some leadership changes.
Current Stock Status
Gemini Space Station shares are currently trading near their all-time low of $4, a significant drop from the $28 IPO price in September, which valued the company at approximately $3.3 billion. On the first day, the shares also reached a high of $45.89. Investors who took Winklevoss's word that Bitcoin would be worth $1 million in 10 years were unpleasantly surprised.
