Investment platform Gemini aims to secure $317 million during its IPO, potentially valuing the cryptocurrency exchange at a hefty $2.2 billion.
In a significant development for the crypto industry, Gemini, the renowned digital asset exchange founded by the Winklevoss twins, has announced plans for an Initial Public Offering (IPO) on the Nasdaq Global Select Market. The offering, expected to begin trading in 2025, aims to raise up to $317 million and values Gemini at approximately $2.22 billion.
The IPO follows a series of listings by crypto-focused companies such as Circle, eToro, and Bullish in the U.S. public markets. Goldman Sachs, Citigroup, Morgan Stanley, and Cantor are leading the underwriting syndicate for Gemini's IPO, with other investment banks also joining the group.
The offering includes 16.67 million shares, with an option for underwriters to buy an additional 2.5 million shares. The IPO is contingent on market conditions and is expected to attract investors betting on wider adoption of digital assets.
Bitcoin, the digital asset that revolutionized the financial world, played a pivotal role in Gemini's journey. The first official commercial transaction with a real company using Bitcoin occurred in 2010, when 10,000 Bitcoins were traded for 2 pizzas at a local Papa John's. Since then, Gemini has grown into a globally impactful technology, providing a secure and regulated platform for buying, selling, and storing digital assets.
In 2024, Gemini reported $142.2 million in revenue, up from $98.1 million the previous year. The company's growth has not gone unnoticed, but it has faced challenges, including a dispute with bankrupt lender Genesis that has drawn regulatory scrutiny. However, Gemini has settled a $5 million lawsuit with the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission has closed its investigation into the company.
Michael Ashley Schulman, partner and chief investment officer at Running Point Capital, has expressed concerns about Gemini's business mix, differentiation, and competition with Coinbase. Despite these concerns, the IPO marks a significant step for the Winklevoss twins' company as crypto businesses test renewed appetite in public markets.
The IPO of Gemini is planned on Nasdaq under the ticker "GEMI". As the crypto industry continues to evolve, the successful IPO could pave the way for more crypto companies to enter the public markets, further legitimizing the digital asset sector.
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