Gemini trading volume drops 73% as Q3 revenue falls to $41 million

Judgment

Gemini CEO Tyler Winklevoss and President Cameron Winklevoss must choose whether to keep funding regulated-infrastructure and prediction-market expansion while Q3 revenue fell to $40.9 million and trading volume dropped 73%, or preserve the 30% operating-expense cut and accept slower growth.

Basis

Tyler Winklevoss said operating expenses declined for a third consecutive quarter and that Gemini intends to stay disciplined about where dollars go; Cameron Winklevoss said Gemini 2.0 is a bet that platforms lasting will own the regulated infrastructure underneath. The mechanism is visible in the numbers: trading volume fell 73% to $4.5 billion from $16.4 billion a year earlier, though it grew 18% from Q2. Exchange revenue dropped 47% to $13.4 million. Total revenue was $40.9 million, down 19% from $50.6 million and 10% from Q2. Net loss narrowed to $58.6 million from nearly $160 million a year earlier and $107.7 million in Q2, as operating expenses fell 30% year over year to roughly $120 million. Prediction market revenue was $800,000, up 52% quarter over quarter; assets on platform rose to $13.4 billion from Q2's $8.4 billion; credit card revenue slipped 4% to $15.5 million. Shares rose 6.5% after hours to $2.79 but remain down around 75% year to date, and the Apex Fintech Solutions letter of intent is still not finalized.