Gemini Space Station Inc. has reported a wider-than-expected quarterly loss in its first earnings report since going public, signalling rising costs as it pushes beyond traditional cryptocurrency trading.

The exchange, launched by Tyler and Cameron Winklevoss, is investing heavily in building a diversified platform that includes tokenised US stocks, credit card products, and future prediction markets.

Despite a revenue increase year-on-year, its losses underscored the financial strain of expansion in a turbulent crypto market.

Shares in Gemini dropped by as much as 12% in post-market trading following the Q3 announcement, with investor confidence shaken by the company’s accelerating spending.

In the third quarter of 2025, Gemini posted a net loss of $6.67 per share, more than double the $3.24 loss analysts had forecast, according to Bloomberg.

This marks a significant shortfall for the newly listed company, which went public in September. The steeper loss came amid rising operational costs, attributed in part to its initial public offering and a broader marketing drive.

Gemini’s revenue for the quarter reached $50.6 million, outperforming the $46.2 million analysts had predicted.

Compared with the same period last year, revenue has doubled as trading activity picked up in a regulatory environment seen as favourable to crypto innovation.

Despite this, the exchange’s spending has grown faster than its earnings, and analysts from Goldman Sachs do not expect it to reach profitability on an adjusted basis until at least 2028.

Gemini continues to derive approximately half of its income from crypto transaction fees. However, it is actively branching into new revenue areas.

The company has begun offering tokenised US stocks on blockchain and is developing its credit card business, which allows users to earn crypto rewards on everyday purchases.

These credit cards have helped attract new users, though analysts warned in an October report that such offerings bring added exposure to both credit and interest rate risk, especially in times of economic uncertainty.

Another major strategic move includes Gemini’s plans to launch a regulated prediction markets platform. These platforms allow users to bet on real-world outcomes such as sports events and political developments.

The company has signalled that this new venture, once regulatory approval is secured, could replicate the early growth trajectory of Bitcoin. Gemini intends to roll this out globally in the future.

While Gemini’s quarterly revenue more than doubled year-on-year, it still represents just 2% of the figure reported by Coinbase Global Inc. in the same period.

Coinbase reported slower growth of 55% over the year, compared to Gemini’s sharper rise. Kraken, another US-based competitor, also reported that its quarterly revenue had more than doubled.

However, both Coinbase and Kraken operate at a larger scale and with more diversified income streams.

Gemini remains unprofitable and comparatively smaller in market share. Its ability to close this gap may depend on the success of its broader platform model.

In a parallel move reflecting its broader strategic ambitions, Gemini’s leadership has increased its political engagement.

In August, the Winklevoss twins donated $21 million to a political action committee backing President Donald Trump and his crypto policy agenda.

They have since attended several events hosted by the president, including a recent gathering in his newly established White House ballroom for high-profile donors.

The political backing may influence Gemini’s regulatory journey as it pushes forward with new financial products requiring government approval.

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