Gemini Bets On ‘super App’ As Stock Sinks To Record Low On Q3 Results

Shares in Gemini slumped after the company reported losses in its third-quarter results, largely due to the costs associated with going public.

Investors sold off shares of the crypto exchange Gemini on Monday, sending the stock to an all-time low after the bell, as the company’s first quarterly results showed losses due to the expense of going public.

Gemini released its third-quarter results on Monday, its first after going public in September, and reported revenues of $50.6 million, more than doubling from $24.5 million the same time a year ago.

The company, however, posted a net loss of $159.5 million, widening from $90.1 million a year ago, largely due to costs related to compensation and advertising ahead of its initial public offering.

Shares in Gemini (GEMI) ended trading on Monday up 4% to $16.84, but plummeted to a low of $14.75 after the bell. The stock slightly recovered to finish the after-hours trading session down 6.2% to an all-time low of $15.80.

Gemini’s share price has dropped around 40% since going public at $28 a share on Sept. 12, as the crypto market failed to sustain a rally that hit its peak in early October.

The share price fall comes as Gemini president and co-founder Cameron Winklevoss signalled to investors on an earnings call that the exchange is betting on building a crypto “super app” to bring together multiple products.

“We’re really excited about building toward the super app,” he said. “It’s an onchain future. We’re an onchain company, and this is our wheelhouse.”

“Our view is that markets are all going onchain. Pretty soon, you will be able to hold a tokenized dollar via stablecoin, tokenized equity, and digital commodities, all within one app,”  Winklevoss said. “We’re making very good progress there.”

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Source: CoinTelegraph