Gemini, the cryptocurrency exchange led by the Winklevoss twins, saw its shares tumble nearly 12% after posting its first quarterly results since going public. Despite strong revenue growth—up 52% from the previous quarter to reach $50.6 million, and a trading volume surge of 45% to $16.4 billion—the company reported a net loss of $159.5 million for the third quarter, more than double its loss from a year earlier. Losses per share came in much worse than analyst expectations, further souring investor sentiment.

Operating expenses soared to $171.4 million, driven by higher salaries, benefits, and an aggressive marketing push. The launch of the Gemini Credit Card brought in $8.5 million for the quarter and now boasts over 100,000 accounts, with services revenue nearly doubling to $19.9 million—almost 40% of total revenue. However, growth has not been enough to offset skyrocketing costs.

While Gemini is expanding into new markets, such as tokenized U.S. stocks and prediction markets, and has secured regulatory licenses in Europe and Australia, the company’s negative adjusted EBITDA of $52.4 million starkly contrasts with Coinbase, which reported a significant profit for the same period. Additionally, analysts have warned that the credit card business could make Gemini more vulnerable to credit risk in a downturn.

Gemini projects its services and interest revenue to rise in 2025, but expects costs—including technology, administrative, and marketing—to remain high. The company stresses a goal of diversifying revenue and investing in new areas but admits that managing expenses will be critical to achieving profitability. Political scrutiny has also increased after significant donations by the Winklevoss twins, raising questions about potential regulatory favor.

As Gemini pushes ambitious growth plans and works to win back investor confidence, sustaining rapid expansion without strict expense control remains its key challenge.