Gemini Stock Surges 15% After Q1 Revenue Jump and $100M Winklevoss Investment

Gemini Space Station (Nasdaq: GEMI) saw its stock climb nearly 15% in after-hours trading Thursday, reaching $6.05 after the crypto exchange posted strong first-quarter 2026 earnings and secured a major $100 million investment from Winklevoss Capital.

The company reported a 42% year-over-year increase in Q1 revenue, highlighting growing diversification beyond spot crypto trading. Gemini also narrowed its net loss to $109 million for the quarter ending March 31, despite a sharp rise in operating expenses tied to stock-based compensation, severance costs, and credit card expansion.

A major growth driver came from services revenue and interest income, which surged 122% to $24.5 million. These segments accounted for nearly half of Gemini’s total revenue, compared to just 31% during the same period last year. Credit card revenue alone skyrocketed almost 300% to $14.7 million, while the platform’s cumulative cardholders exceeded 123,700 over the past four quarters.

Meanwhile, spot trading revenue declined 27% to $17.2 million as quarterly trading volumes fell to $6.3 billion. However, Gemini’s monthly transacting users still increased 17% year-over-year to 589,000, signaling continued customer growth.

Investor sentiment improved further after Winklevoss Capital purchased over 7.1 million Class A shares at $14 each, paying entirely in Bitcoin (BTC). The purchase price was significantly above GEMI’s previous closing price of $4.92, reflecting strong insider confidence in the company’s future.

Gemini recently strengthened its derivatives business after receiving a Derivatives Clearing Organization license from the CFTC, enabling the exchange to manage settlement and risk internally for its expanding derivatives and prediction market offerings.

Although operating expenses rose 73% to $144.5 million, adjusted EBITDA improved to negative $59.9 million. Gemini ended the quarter with $215.6 million in cash and equivalents before the bitcoin-funded investment was finalized in May 2026.