Updated with opening price:
Cryptocurrency exchange operator Gemini Space Station Inc. raised $425 million tonight after pricing its initial public offering at $28 per share, up from an initial range of $17 to $19 per share and valuing it at $3.3 billion.
The offering price was more than the $24 to $26 anticipated, indicating high demand for the issue. The number of shares was reportedly limited purposely, coming in below the 16.7 million revealed in earlier filings with the U.S. Securities and Exchange Commission. The IPO is more than 20 times oversubscribed, a Bloomberg source said.
Update: On Friday, shares popped more than 40%.
Gemini was founded in 2014 by twins Tyler and Cameron Winklevoss, who had earlier filed a high-profile intellectual property lawsuit against Mark Zuckerberg over Facebook. It operates an exchange that allows users to buy and sell more than 70 cryptocurrencies. It also provides access to crypto derivatives, digital assets that derive their value from cryptocurrencies.
The company and its selling stockholders have reportedly granted underwriters Goldman Sachs and Morgan Stanley a 30-day option to sell an additional 452,807 and 380,526 shares, respectively. The stock will trade on the Nasdaq exchange under the “GEMI” ticker symbol.
Bloomberg said up to 30% of the shares will be reserved for retail investors on platforms such as Robinhood, Webull, SoFi, Moomoo Financial and Futu Securities.
Gemini’s stock will start trading on Friday, and its reception should reveal how much appetite investors have for more crypto companies, following a spate of IPO announcements by industry players. Circle Internet Group Inc., the issuer of the USDC stablecoin, and Bullish US LLC, which operates a rival cryptocurrency exchange, had successful public debuts. But the momentum behind digital assets such as bitcoin and ether has cooled in the last couple of weeks.
Investors may also perceive Gemini as a riskier bet, given that it remains unprofitable, unlike Circle and Bullish. In its SEC filing, Gemini revealed a net loss of $159 million in fiscal 2024, and that has grown to $283 million in the first six months of this year. That said, there are also reasons to be optimistic about Gemini’s future, given the recent encouraging regulatory moves by a White House administration that’s seen as being pro-crypto and the increased institutional adoption of crypto assets.
Moreover, Gemini itself received a big vote of confidence earlier in the week when Nasdaq revealed it’s making a $50 million investment into the company. It’s a strategic move by Nasdaq, which aims to provide its clients with access to Gemini’s digital asset custodial services.
Image: News/Dreamina AI
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