GEMI Stock Nears 90% Drop Since IPO — Citi Cuts Price Target Amid Lawsuit, Financial Strain, Founder Bailout Talk

• Analyst Peter Christiansen at Citi slashed the price target on Gemini to $4 from $5.50 and kept a ‘Sell’ rating on the shares. 
• Other firms, including Evercore and Morgan Stanley, have also reduced their price targets on GEMI’s stock.
• The cautious outlook comes amid the Winklevoss twins-backed cryptocurrency exchange facing financial issues.

Winklevoss twins-backed Gemini Space Station (GEMI) edged higher in midday trade despite getting a price target from Citi, citing a “bigger than expected” dip in spot activity over the past quarter. 

Citi analyst Peter Christiansen lowered the price target on Gemini to $4 from $5.50 and kept a ‘Sell’ rating on the shares. He noted that the drop in spot activity is likely to result in continued share losses for Gemini.

GEMI’s stock edged 0.2% higher in midday trade amid broader weakness in both the equity and cryptocurrency markets. Retail sentiment around the cryptocurrency exchange led by Cameron and Tyler Winklevoss trended in ‘bearish’ territory over the past day, accompanied by ‘low’ levels of chatter.

GEMI’s stock is down 56% this year and remains more than 88% below its IPO debut high of $45.89 in September last year.

Meanwhile, Bitcoin (BTC) momentarily dipped below $76,000 in midday trade after the UAE announced it would be leaving the Organization of the Petroleum Exporting Countries (OPEC) next month, leading to a surge in oil prices. 

Bitcoin’s price fell nearly 2% in the last 24 hours to around $75,900. Retail sentiment around the apex cryptocurrency on Stocktwits remained in ‘bullish’ territory over the past day, accompanied by chatter at ‘normal’ levels. 

Analysts Cut GEMI Price Targets Amid Weak Trading Activity

Citi’s downgrade adds to a series of cautious calls from Wall Street. Earlier this month, Evercore cut its price target on Gemini to $5 from $10, maintaining an ‘In Line’ rating.

Morgan Stanley also reduced its target to $6 from $13, keeping an ‘Equal Weight’ rating. The firm noted that while first-quarter results for brokers and exchanges may modestly exceed expectations, forward estimates carry downside risk. Its projections for the sector are now 4% to 5% below consensus for 2026 and 2027.

Strategic Retrenchment And Asset Sales In Focus

Gemini’s operational footprint has narrowed in recent months. The company said in February it would focus on core markets in the U.S. and Singapore, exiting the U.K., European Union, and Australia.

According to a CoinDesk report, potential buyers have expressed interest in acquiring regulatory licenses tied to Gemini’s shuttered European operations, rather than pursuing a full takeover of the exchange.

Bloomberg also reported that the company has explored internal options to address financial pressure, including the possibility that founders Tyler Winklevoss and Cameron Winklevoss could forgive $330 million in loans extended to the business. Such a move would require their approval as majority voting shareholders.

Regulatory Pressure Adds To Challenges

Gemini is also dealing with increasing regulatory scrutiny. New York Attorney General Letitia James filed lawsuits against Gemini and Coinbase earlier this month, alleging that their prediction market offerings constitute illegal gambling operations under New York law.

The complaints argue that these platforms allow users to wager on events, including sports and elections, without proper licensing. The state is seeking penalties, restitution for affected users, and the forfeiture of profits tied to the alleged activities.

Read also: Bitcoin ‘Apocalypse’ Coming? Billionaire Tim Draper Predicts ‘Cataclysmic’ Shift From Dollars To BTC

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