Gemini Shares Fall 24% in First Week After IPO Amid Profitability Concerns

Gemini Space Station (GEMI), the crypto exchange founded by Cameron and Tyler Winklevoss, has seen investor enthusiasm wane following its Nasdaq debut, with shares dropping more than 20% since listing last Friday.

On Tuesday, GEMI traded at $30.42, down roughly 6% for the day and nearly 24% below its IPO price over the past week. The sharp retreat comes after the company raised $425 million in its public offering, pricing shares at $28 and valuing the firm at $3.3 billion prior to trading.

The stock initially surged on debut, climbing to a peak of $45.89 before settling at $32 — a 14% premium to the IPO price. Since then, shares have lost more than a third of that gain, erasing much of the early market excitement.

While Gemini struggles, other crypto-related equities have been more stable. Coinbase (COIN), the largest U.S. exchange, remained flat over the past week, Robinhood (HOOD) slipped 3%, and token issuer Circle (CRCL) rose 13%.

Gemini’s financial performance is adding pressure. The company reported a $283 million net loss in H1 2025, following a $159 million loss in 2024. Despite the fresh capital from the IPO, profitability remains out of reach.

Compass Point analyst Ed Engel highlighted the stock’s lofty valuation: GEMI trades at 26 times its annualized first-half revenue. For investors, this means paying $26 for every $1 of expected sales, a steep multiple for a loss-making company in a volatile sector, likely contributing to skepticism around the stock.