Gemini posts $108 million loss as crypto slump drains exchange volumes

Gemini reported a second-quarter net loss of $107.7 million on August 13 and its shares fell by over 7% in after-hours trading. This is the clearest sign so far that a crypto downturn in the marketplace is now damaging exchanges that continue to generate revenue from trading fees.

The damage was primarily to Gemini’s business model. Trading volume on the main exchange of Gemini fell from $11.3 billion a year ago to $3.8 billion now, while total assets on the platform also decreased, from $18.2 billion to $8.4 billion because bitcoin and other cryptocurrencies had lost about half their price during the same time period.

For an industry that was celebrating record highs in 2025, this quarter provided a reminder of how fast the fee revenue disappears when prices change.

A trading business shrinking with the market

The exchange revenue is indeed telling a different story: there is a fall of 38% to just $12.5 million because customers have been trading less. In fact, the number of monthly transacting users went up by 11% year on year. So, customers didn’t stop trading but just weren’t motivated to trade as much.

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