• Gemini, which made its debut in the U.S. stock market during the third quarter, said its operating expenses totaled $171.4 million, up $72.7 million sequentially.
• Cameron Winklevoss, the co-founder of Gemini, said the company plans on building a “globally integrated super app.
• During the call with analysts, Winklevoss stated that the company is actively working with regulators to bring prediction markets to its platform.

Gemini Space Station (GEMI) stock slipped 8.9% in premarket trading after the company reported a wider-than-expected third-quarter loss.

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The company reported a net loss of $6.67 per share, whereas analysts had expected a loss of $3.24 per share, according to a Bloomberg News report. Its net revenue, however, doubled to nearly $50 million.

Why Did The Firm Post A Loss?

Gemini, which made its debut in the U.S. stock market during the third quarter, reported that its operating expenses totaled $171.4 million, a $72.7 million increase sequentially, primarily due to IPO-related stock-based compensation and elevated marketing expenses tied to card and exchange growth. “We believe that our expense growth is strategic and controlled,” Dan Chen, the CFO of Gemini, said.

Cameron Winklevoss, the co-founder of Gemini, said the company plans on building a “globally integrated super app that connects traditional finance and crypto in one seamless experience.” The firm’s total transaction revenue during the third quarter jumped to $26.3 million, from $14.6 million in the year-ago quarter, driven by increased trading activity across both retail and institutional channels as market volumes improved.

The company said its services revenue increased to $19.9 million, reflecting continued
diversification of Gemini’s business mix and growing contributions from credit card, staking, and custody products. “We believe that these results demonstrate the health of Gemini’s marketplace and the growing depth of liquidity across customer segments,” the firm said in a statement.

What Is Retail Thinking?

Retail sentiment on Stocktwits about Gemini moved to ‘extremely bullish’ from ‘bullish’ a day ago, while chatter jumped to ‘extremely high.’

Most retail traders urged others to buy the dip.

Gemini Explores Foray Into Prediction Markets

During the call with analysts, Winklevoss said that the company is actively working with regulators to bring prediction markets to its platform. “We're very excited about these markets. We think it's very early days. It reminds us a lot of what Bitcoin felt like in 2012 when we first discovered it. And this idea that you can essentially build a market on anything, any kind of event, is fascinating and really a boundless opportunity,” he said.

According to a Bloomberg News report, Bernstein analysts labeled prediction markets a viable asset class earlier this month, arguing that while they once seemed like novelty bets, they are now being integrated into the foundations of mainstream finance, backed by real capital, real users, and regulatory approval.

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