GEMI Stock Extends Losing Streak To Eighth Straight Week, Hits Record Low Despite Drop In Quarterly Loss

• Gemini Space Station ended Friday's trading session at $2.3, reaching its record low. 
• Total revenue fell 19% from a year earlier, while transaction revenue dropped 40%.
• The revenue came more from its services segment, which includes its credit card business.

Gemini Space Station (GEMI) shares fell for the eighth straight week on Friday, reaching its record low despite the crypto exchange trimming its third-quarter loss and costs for a third consecutive quarter.

GEMI has fallen for eight straight weeks and is down roughly 59% from its late-September high. The biggest weekly drops were seen in mid-to-late October, of around 18% and 15%, followed by around 14% in the week of Nov. 2.

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Shares fell more than 3% this week, reaching $2.375, the stock’s lowest close on record. On Friday’s trading session, GEMI stock was down over 9%. On Stocktwits, retail sentiment around GEMI dropped to ‘neutral’ from ‘bullish’ zone over the past day, while chatter stayed at ‘high’ levels over the past day.

Losses Narrow, Costs Drop

Gemini said total revenue was down 19% from a year ago to $40.9 million and down 10% from the second quarter. The revenue missed the analyst estimate of $43.05 million, according to Koyfin. Gemini reported a loss of $0.46 per share, while Wall Street expected a loss of $0.59 per share, according to Koyfin. 

 The company said the volume of trades on its platforms fell to $4.5 billion from $16.4 billion a year ago, largely reflecting weaker crypto trading. Gemini said about 26% of the volume came from trades between external customers and its affiliated market maker.

Gemini said exchange revenue fell 47% from a year earlier to $13.4 million, largely due to lower retail activity with transaction revenue declining 40% to $15.9 million. Gemini's prediction markets generated about $0.8 million net of incentives, the company said, up 52% from the second quarter.

Credit Cards Carry More Weight

The move away from trading has made Gemini more dependent on its services segment. The company said services revenue and interest income was $23.3 million, or 59% of net revenue, up from 47% a year earlier.

Credit card revenue was $15.5 million, up 82% year over year. Gemini said the card business still lost money after provisions for bad loans, but the loss shrank to $3.4 million from $10.6 million in the second quarter.

Card charge-offs, or balances written off as uncollectible, rose to $11.5 million from $3.4 million a quarter earlier. Total delinquencies 30 days or more over the same period fell to 6% from 9.4%. Gemini said delinquency was broadly stable at 3.4%, excluding accounts it identified as fraud.

Cameron Winklevoss Doubles Down On Gemini 2.0

The company said staking revenue was down 29% to $4.2 million from a year ago due to lower staked balances and yields.

Gemini ended the quarter with $194.1 million of cash and cash equivalents, up from $188.6 million at the end of June. The company said it increased its credit facility with Galaxy by $35 million after the quarter ended.

President Cameron Winklevoss framed the company's strategy around owning regulated infrastructure. "Gemini 2.0 is our bet that the platforms that last will be the ones that own the regulated infrastructure underneath," he said.

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