Gemini Shares Surge 20%+ on Q1 Loss Cut, $100M Investment

Gemini Space Station shares surged more than 20 percent in premarket trading Friday after the New York-based cryptocurrency exchange reported a narrower first-quarter net loss and disclosed a $100 million investment from its founders' family office.

The company, which trades on Nasdaq as GEMI, posted a net loss of $109 million for the first quarter ended March 31, improved from $149 million a year earlier and better than analyst expectations of a $1.03 per share loss. Revenue climbed 42 percent to $50.3 million, driven by growth in services including credit cards, staking and custody, which rose 122 percent to $24.5 million. Credit card revenue jumped nearly 300 percent to $14.7 million. Spot trading revenue fell 27 percent to $17.2 million as volumes dropped to $6.3 billion from $13.5 billion the prior year. Monthly transacting users increased 17 percent to 589,000. Operating expenses rose 73 percent to $144.5 million, reflecting higher compensation, marketing and restructuring costs. Cash and equivalents stood at $215.6 million at quarter's end, before the new infusion.

The investment came late Thursday from Winklevoss Capital Fund, operated by twins Tyler and Cameron...