- Retail trading fell to $600 million, its lowest quarterly level in three years.
- Credit cards generated $15.5 million, exceeding the exchange business by $2.1 million.
- Prediction market revenue rose 52% from Q2 but remained below $1 million.
Gemini reported a $58.6 million third-quarter net loss on November 12, down from $159.5 million a year earlier. Cost cuts helped narrow the loss even as spot trading volume fell 73% and total revenue dropped 19% to $40.9 million. Shares rose 6.5% to $2.79 in after-hours trading, though they remained down about 75% for the year.
Why Gemini trading volume rose from Q2 despite a retail slump
In its quarterly earnings release, Gemini put spot trading volume at $4.5 billion, down from $16.4 billion a year earlier. Compared with the previous quarter, however, volume rose 18%. The company credited increased institutional trading in Zcash and greater activity by affiliated market makers.
Institutions traded $3.9 billion, up 26% from Q2. Retail customers traded $600 million, down 14% and the lowest quarterly total since 2023. Retail customers still accounted for nearly three-quarters of exchange revenue despite representing only about 13% of volume.
That gap helps explain why the rebound in trading produced a smaller increase in fees. Exchange revenue rose 7% from Q2 to $13.4 million as institutional revenue more than doubled. It remained 47% below the prior-year quarter.
Credit cards bring in more revenue than the crypto exchange
Gemini cut operating expenses 30% year over year to $119.9 million, primarily by spending less on marketing and employee compensation. It was the third consecutive quarter of lower spending. The net loss also narrowed from $107.7 million in Q2.
Credit card revenue rose 82% year over year to $15.5 million, overtaking exchange revenue despite a 4% dip from Q2. Card losses also grew: charge-offs reached $11.5 million, up from $3.4 million a year earlier, partly because of a previously disclosed fraud incident.
Gemini earned $796,000 from prediction markets, up 52% from Q2. An August letter of intent with Apex Fintech Solutions could let brokerages offer its event contracts. The agreement remains nonbinding.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
