Gemini (GEMI) Stock Falls 7% After $108 Million Q2 Loss and Fraud Charge

TLDR

• Gemini stock fell 7% to $4.00 in after-hours trading after reporting a Q2 net loss of $107.7 million
• Revenue grew 37% to $45.5 million, with credit card revenue surging 231% to $16.2 million
• Exchange revenue dropped 38% to $12.5 million as trading volume fell from $11.3 billion to $3.8 billion
• A $16.1 million credit card fraud provision pushed transaction losses to $20.1 million
• Operating expenses fell 15% to $122.4 million following a 30% staff cut in February

Gemini Space Station (GEMI) stock fell 7% to $4.00 in after-hours trading Thursday after the crypto exchange posted a second-quarter net loss of $107.7 million. The stock had actually closed the regular session up 3.12% at $4.30 before earnings hit.

Gemini Space Station, Inc., GEMI

The net loss narrowed 19% from $133.2 million a year earlier. But the results were enough to send the stock back near its all-time lows, below $4.

Revenue came in at $45.5 million, up 37% from $33.3 million in the same quarter last year. That growth story is real, but so are the headwinds.

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