Gemini posts $107.7 million Q2 loss as trading volume collapses

Digital asset trading volumes across centralized exchanges have fallen sharply over the past year, and Gemini's second-quarter results put a hard number on how much that hurts a retail-heavy platform. The exchange (NASDAQ: GEMI), led by twin brothers Cameron and Tyler Winklevoss, reported a net loss of $107.7 million for the quarter, 19% narrower than the $133.2 million loss posted in the same period a year earlier. Total revenue reached $45.5 million, up 19% year-over-year, as the company's card and staking lines partially offset a steep drop in transaction fees.

Trading collapse, revenue diversification

The damage is concentrated in the transaction line. Trading revenue fell 38% to $12.5 million as total platform volume dropped to $3.8 billion from $11.3 billion a year ago. That volume decline sits at the center of the profitability gap: the exchange ran $107.7 million in losses against $12.5 million in trading revenue for the quarter. The pattern is the sector-wide read-through: when retail spot demand thins, exchanges built on transaction economics feel it first. CEO Tyler Winklevoss said in the earnings statement that "We still have work to do."

The company has been building around that weakness since going public in September 2025, adding a crypto-focused credit card and a prediction market. Credit card revenue rose 231% year-over-year to $16.2 million. Staking revenue on the company's crypto holdings grew 50% to $4 million. The prediction market, launched in December 2025, contributed $500,000 in the quarter, up from $400,000 at its debut. Those lines are growing, and the exchange is still reporting losses at scale.

The stock's signal

Markets did not read the improvement as relief. GEMI shares fell 5% on August 14 after the print. Since the September 2025 IPO, the stock has declined 87% to trade at $4.08. That drawdown has generated speculation in recent months that Gemini could be a takeover target.

Against the backdrop of that performance, the demand environment for centralized crypto venues remains the macro caveat. The exchange processed $3.8 billion in volume for the quarter, against $11.3 billion in the year-ago period.