Losses narrowed, and trading cooled too.
Gemini’s third-quarter net loss narrowed 63% year over year, but revenue fell 19%. CEO Tyler Winklevoss said the company plans to win back the trust of customers and shareholders “quarter by quarter.” But first, look at the numbers: trading volume plunged 73% year over year, and exchange revenue fell 47%.
A big part of the effort to stop the bleeding came from cutting costs. Operating expenses fell 30% year over year, while sales and marketing expenses were slashed by 75%. That was a brutal cut, with expenses down for three consecutive quarters.
But don’t rush to assume the trading business is recovering just because adjusted losses narrowed from $74 million in the second quarter to $11.6 million. Gemini’s results tied to crypto assets and loans swung from a $25 million loss last quarter to a $25.7 million gain this quarter—a $50.8 million difference. Excluding that, Unchained calculates from the disclosed figures that adjusted losses were about $37.3 million. You can’t make this up: the books look better, but a big chunk of the improvement came from favorable valuation changes.
Even more striking, under standard accounting rules, Gemini’s operating loss actually widened to $79 million in the third quarter, up from $76.9 million in the second. Tyler says the company will win back trust quarter by quarter, but trading volume is still 73% below last year. The harder sell this time is presenting “stopping the bleeding” as a business recovery.
The European business doesn’t look good either. Gemini previously announced plans to gradually exit markets including the UK and EU. CoinDesk reported that an unnamed source familiar with the matter said the UK and European businesses were sold to KAST for less than $10 million. Gemini declined to comment, and KAST did not confirm the deal. A KAST job posting mentioned the transfer of Gemini’s UK and European teams and the integration of its entities, but neither side has officially announced a deal.
The reported loss has narrowed, but trading volume hasn’t come back; and the news of the European sale is still awaiting official confirmation from both sides. #Gemini #cryptocurrency
Gemini’s third-quarter net loss narrowed 63% year over year, but revenue fell 19%. CEO Tyler Winklevoss said the company plans to win back the trust of customers and shareholders “quarter by quarter.” But first, look at the numbers: trading volume plunged 73% year over year, and exchange revenue fell 47%.
A big part of the effort to stop the bleeding came from cutting costs. Operating expenses fell 30% year over year, while sales and marketing expenses were slashed by 75%. That was a brutal cut, with expenses down for three consecutive quarters.
But don’t rush to assume the trading business is recovering just because adjusted losses narrowed from $74 million in the second quarter to $11.6 million. Gemini’s results tied to crypto assets and loans swung from a $25 million loss last quarter to a $25.7 million gain this quarter—a $50.8 million difference. Excluding that, Unchained calculates from the disclosed figures that adjusted losses were about $37.3 million. You can’t make this up: the books look better, but a big chunk of the improvement came from favorable valuation changes.
Even more striking, under standard accounting rules, Gemini’s operating loss actually widened to $79 million in the third quarter, up from $76.9 million in the second. Tyler says the company will win back trust quarter by quarter, but trading volume is still 73% below last year. The harder sell this time is presenting “stopping the bleeding” as a business recovery.
The European business doesn’t look good either. Gemini previously announced plans to gradually exit markets including the UK and EU. CoinDesk reported that an unnamed source familiar with the matter said the UK and European businesses were sold to KAST for less than $10 million. Gemini declined to comment, and KAST did not confirm the deal. A KAST job posting mentioned the transfer of Gemini’s UK and European teams and the integration of its entities, but neither side has officially announced a deal.
The reported loss has narrowed, but trading volume hasn’t come back; and the news of the European sale is still awaiting official confirmation from both sides. #Gemini #cryptocurrency