Gemini shares jumped after Tyler and Cameron Winklevoss invested $100 million in the struggling crypto exchange.
Tyler and Cameron Winklevoss, the billionaire founders of the Gemini crypto exchange, are putting $100 million into the trading platform after its shares lost more than 80% over the past year, Bloomberg reports.
Winklevoss Capital Fund made the investment at $14 per share of Gemini’s Class A common stock, with the payment made in Bitcoin, the report reads. Gemini shares closed Thursday at $5.26, meaning the founders invested at more than 2.6 times the closing market price, according Yahoo Finance.
Read also: Only 32% of Tokens Rise After Listing on Top Crypto Exchanges: Data
The stock jumped about 20% in post-market trading after the news broke. Even with that move, the company still remains far below the level investors were willing to pay around its September 2025 IPO.
In a commentary for Bloomberg, Tyler Winklevoss, Gemini’s CEO, said the market has “significantly undervalued Gemini” and that the investment will help the company enter its next growth phase. He also said Gemini wants to evolve “from a crypto company into a markets company.”
Gemini Still Faces Losses
But Gemini is still losing money. The investment comes at a challenging time for the exchange, which is a relativelly small one in an industry where scale and product diversification are critical.
The drop of the Bitcoin price from its October peak levels has also negatively impacted crypto-related stocks, while Gemini has been reducing its expenses.
In March, the firm announced that it had reduced staff by around 30%, which brought its total number of employees to 445, following its plan to shut down some of its businesses in the UK, EU, and Australia.
In April, it was reported that buyers were looking to acquire some of Gemini’s shut-down business units in Europe and the UK. It’s still unclear if there have been any deals resulting from this.
Still, Gemini’s Q1 loss narrowed to $109 million from $149.3 million a year earlier, while revenue rose 42% to $50.3 million, Bloomberg reports.
Nonetheless, the company’s trading business remains weak, with exchange revenue down 27% and trading volume falling to $6.3 billion from $13.5 billion, while growth came from services and over-the-counter trading revenue.
Read more: New York Sues Coinbase and Gemini Over Prediction Markets
