Crypto exchange Gemini has filed plans for a U.S. initial
public offering that could raise up to $317 million and value the firm at about
$2.22 billion. The offering marks a significant step for the Winklevoss twins’
company as crypto businesses test renewed appetite in public markets.
Gemini Moves Toward Nasdaq Listing
In an SEC filing, Gemini Space Station, Inc. said it intends to list its Class
A common stock on the Nasdaq Global Select Market under the ticker “GEMI.” The
firm will offer 16.67 million shares priced between $17 and $19 each.
Underwriters will also have a 30-day option to buy about 2.5 million additional
shares.
Goldman Sachs, Citigroup, Morgan Stanley, and Cantor are leading the underwriting syndicate, which is joined by a group of other investment
banks.
In filings with the Securities and Exchange Commission,
Gemini reported $142.2 million in revenue for 2024, compared with $98.1 million
the previous year. While smaller than Coinbase, the results point to higher
trading activity during last year’s rally in bitcoin and other digital assets.
Significance for the Winklevoss Twins
Founded in 2014 by Cameron and Tyler Winklevoss, Gemini has
positioned itself as a regulated exchange for U.S. investors. However, the company has
faced challenges, including a dispute with bankrupt lender Genesis that drew
regulatory scrutiny, but continues to pursue growth in a competitive market.
The IPO comes as crypto firms return to U.S. public markets,
following listings by Circle, eToro, and Bullish. Gemini’s mid-sized scale could
attract investors betting on wider adoption of digital assets, though the
company cautioned that the deal depends on market conditions and may not proceed as
planned.
Read more: After Circle’s IPO, Crypto Exchange Gemini Takes Next Step Toward Listing With SEC Filing
Gemini’s IPO plans follow recent regulatory resolutions.
Earlier this year, the U.S. Securities and Exchange Commission closed its
investigation into the company. The exchange also settled a $5 million lawsuit
with the Commodity Futures Trading Commission, clearing significant
obstacles to its public market debut.
“The question for investors regarding Gemini revolves around the business mix and moat of trading versus custody, how they differentiate on trust and growth, and what they do that Coinbase can’t copy by Tuesday,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital, quoted by Reuters.
This article was written by Jared Kirui at www.financemagnates.com.
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