Newly Public Crypto Exchange Gemini Gets Lukewarm Reception From KBW

Core Viewpoint - KBW initiated coverage of Gemini Space Station (GEMI) with a market perform rating and a $27 price target, highlighting its potential for long-term growth despite current unprofitability and elevated market risks [1][2] Company Overview - Gemini is described as a well-rounded digital asset platform with an ecosystem that includes trading, custody, credit cards, staking, stablecoins, and tokenized equities, which offers cross-selling potential as the crypto market expands [1] - The company went public at $28 per share, valuing it at over $3 billion [2] Growth Drivers - The credit card business is identified as a key growth driver, boasting over 100,000 users and strong conversion rates into exchange activity due to crypto-based rewards [2] - A new partnership with Nasdaq could generate up to $47.7 million in near-term revenue through custody and staking services for listed firms, with additional upside linked to tokenization trends [3] Financial Projections - KBW projects a 53% annualized revenue growth over the next three years, which is expected to outpace peers, and anticipates profitability by late 2027 [4] - The stock was noted to be 2% higher premarket at $25.80 [4]