Gemini Space Station Is Launching a Prediction Markets Business. Should You Buy GEMI Stock Here?

Core Insights - Gemini Space Station operates as a leading cryptocurrency exchange and custodian platform, facilitating the buying, selling, storing, and trading of digital assets like Bitcoin and Ethereum, while also offering advanced features such as derivatives trading and NFT services [1][2] Group 1: Company Overview - Established in 2014, Gemini Space Station is headquartered in New York City, USA [2] - The platform serves approximately 523,000 monthly transacting users and 10,000 institutions across more than 60 countries, holding money transmission licenses in all 50 U.S. states [1] Group 2: Stock Performance - Gemini Space Station trades near $14, with a 52-week range of $9.67 to $45.89, reflecting a significant decline of over 60% from its post-IPO highs [3] - Despite a recent jump of more than 19% over the last five days, the stock has dramatically underperformed compared to the broader U.S. equity market [3] Group 3: Financial Results - For Q3 FY2025, Gemini Space Station reported revenue of about $49.8–$50.6 million, more than doubling year over year and approximately 50%+ sequentially, slightly exceeding analyst expectations [4] - The company posted a GAAP net loss of $159.5 million, resulting in an EPS of $6.67, which was significantly worse than the consensus loss of around $3.2 per share, indicating a sizable negative earnings surprise [4] Group 4: Operating Performance - Net revenue increased by about 52% quarter-over-quarter, driven by higher trading volumes and the rapid adoption of its crypto credit card [5] - Operating expenses rose to roughly $171 million, more than doubling year over year due to IPO-related stock-based compensation and investments in marketing and technology, leading to negative operating and net margins [5]