Gemini Files for Nasdaq IPO, Becoming Third Major Crypto Exchange

Cryptocurrency exchange Gemini has formally announced its intent to go public on Nasdaq under the ticker GEMI, marking a significant development for the digital asset sector. This strategic move signals continued maturation within the crypto industry, even as the company navigates recent financial challenges detailed in its public S-1 filing.

• Gemini plans to list on Nasdaq under the ticker GEMI, signaling industry maturation.
• The company has disclosed substantial financial losses in recent periods.
• Client accounts will be divided between Gemini Trust and Moonbase to address regulatory compliance.
• A $75 million credit agreement with Ripple, potentially increasing to $150 million, has been established.
• The IPO is being managed by a consortium of major financial institutions.
• Gemini would become the third major U.S. cryptocurrency exchange to trade publicly.

Financial Overview

The company’s financial disclosures illustrate a period of significant losses. Gemini reported a net loss of $282.5 million for the first half of the current year, a stark increase from $41.4 million during the same period in 2024. Adjusted EBITDA also shifted considerably, moving from a $32 million profit to a $113.5 million loss. For the full 2024 fiscal year, Gemini recorded a net loss of $158.5 million on revenues totaling $142.2 million.

Operational Strategy and Regulatory Compliance

As part of its operational strategy for the IPO, Gemini intends to distribute client accounts between two distinct legal entities: Gemini Trust in New York and Moonbase in Florida. Moonbase is designated to serve as the primary operating platform, a decision aimed at navigating New York’s stringent BitLicense requirements, which impose restrictions on certain services like staking.

Strategic Partnerships and IPO Details

The IPO application further revealed a credit agreement with Ripple, established in July. This facility provides a $75 million line of credit, with the potential to increase to $150 million, extended in the RLUSD stablecoin. As of the filing, Gemini has not yet drawn on this credit line. The offering is being orchestrated by a consortium of financial institutions including Goldman Sachs, Citi, Morgan Stanley, and Cantor, though the target IPO price remains undisclosed.

Industry Impact and Precedent

Should the listing proceed, Gemini, founded by Cameron and Tyler Winklevoss, will become the third major cryptocurrency exchange to trade publicly in the U.S. This follows the listings of Coinbase and Bullish, both of which are traded on the New York Stock Exchange, marking another milestone in the expansion of regulated crypto market infrastructure.