Gemini Shares Down 80% From IPO, Acquisition Speculation Resurfaces

Cryptocurrency platform Gemini's shares have fallen about 80% since its listing, with market capitalization dropping from a peak of roughly $4 billion to $753 million, as trading volume, revenue, and platform assets all continue to decline, reigniting acquisition speculation. Gemini's second-quarter exchange revenue fell 38% year-over-year to $12.5 million, spot trading volume dropped 66% to $3.8 billion, and platform assets declined from $18.2 billion to $8.4 billion. ARK Invest's director of digital asset research, Lorenzo Valente, posted on X last month that offshore perpetual contracts platform Hyperliquid should acquire Gemini as a gateway into the U.S. regulated market for perpetuals and prediction market businesses. The Winklevoss twins hold 94.5% of Gemini's voting rights, which could simplify deal negotiations, but also means any sale would require both of their approvals. There is currently no indication that Hyperliquid is actively pursuing an acquisition. Despite the shrinking exchange business, Gemini still holds regulatory licenses and approvals that competitors would find difficult to replicate, and potential buyers may weigh acquisition costs against the time and legal fees required to obtain licenses themselves. This aligns with the trend in crypto M&A where buyers increasingly value regulatory infrastructure, distribution channels, and market access, such as Keyrock's acquisition of BlockFills' trading assets and Ondo's exploration of an acquisition of up to $500 million. CoinDesk reported in April that potential buyers were considering acquiring Gemini's shuttered European and UK operations to obtain licenses. Gemini declined to comment.