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Gemini revenue rises on credit cards as exchange activity falls

Gemini posted $45.5 million in total revenue, but exchange revenue slid 38% and spot matched trading volume dropped to $3.8 billion from $11.3 billion.

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Gemini reported a second-quarter increase in total revenue as its credit-card business expanded, but activity in its core exchange business continued to shrink, according to its Aug. 13 quarterly filing.

The company said total revenue rose to $45.5 million from $33.3 million a year earlier, driven primarily by credit-card revenue climbing to $16.2 million from $4.9 million. It also disclosed $8.7 million in combined card rewards and promotional and referral incentives.

Despite the top-line gain, exchange revenue fell 38% to $12.5 million from $20.2 million, with spot matched trading volume dropping to $3.8 billion from $11.3 billion, a decline of about 66%. Gemini said newer products contributed more to revenue while the exchange generated less.

Gemini also pointed to restructuring costs and ongoing losses after previously cutting about 200 jobs, while reporting no restructuring charge in the quarter. Total operating expenses rose 24% to $122.4 million and the operating loss widened to $76.9 million from $65.4 million, with Gemini attributing an adjusted EBITDA deterioration in part to market-related losses on bitcoin it received through a May private placement.

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