Here's Why Gemini Space Station Stock Slumped This Week

Key Points
Declining cryptocurrency prices are hurting the company's transaction revenue.
The company continues to grow its credit card related revenue.
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Shares in Gemini Space Station (NASDAQ: GEMI) declined by more than 23% in a confusing week for shareholders. The company released its fourth-quarter earnings, which were in line with what management had already told investors it estimated they would be a month earlier. However, the damage was done the day before the earnings release thanks to an analyst downgrade.
A mixed week for Gemini Space Station
Given the rarity of Wall Street analysts giving sell recommendations, when an analyst at a heavyweight company like Citi issues one, then the market takes notice. The analyst's concerns about profitability are justified, not least because the company remains loss-making. With cryptocurrencies under pressure (Bitcoin and Ethereum are both down more than 20% in 2026 as I write), it's hard to see the company making a near-term quantum leap in profitability.
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Gemini Space Station earnings
The company is struggling to grow transaction revenue, as falling cryptocurrency prices tend to discourage trading. Overall transaction revenue declined 17% in the fourth quarter of 2025 compared to the same period in 2024, and by more than 1% to $98 million for the full year.
However, its full-year services revenue grew from $30.1 million in 2024 to $64.6 million in 2025, led by a near-tripling in credit card revenue to $33.1 million. As such, total revenue grew by 26% to $179.6 million. However, a massive increase in operating expenses from $308 million to $525 million, and total "other income" items generated a $243 million loss for the full-year helping take the company to a whopping $583 million net loss for 2025.
The other income items include loan-related losses, loan interest expense, and unfavorable changes in loan value. As a reminder, Gemini Space Station, run by the management team of Cameron and Tyler Winklevoss, "regularly enters into lending agreements with Winklevoss Capital Fund, LLC ("WCF"), a related party through common ownership," according to the company's SEC filings.
The stock may interest cryptocurrency bulls, but for most other investors, it's probably worth avoiding.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.