Last week, Gemini Space Station (NASDAQ:GEMI) told the SEC that an investor could resell up to 7,142,857 of its Class A shares. The filing doesn’t require anyone to sell, and the share count matches the private placement the company closed with Winklevoss Capital Fund in May. The filing matters less than the business behind it. Gemini’s revenue rose 37% in the second quarter of 2026 even though exchange revenue fell 38%, which means crypto trading is no longer what drives growth.
Founded by Cameron and Tyler Winklevoss, Gemini began as a place to buy and sell crypto. It now also issues a crypto rewards credit card, runs staking services, operates a prediction market, and added commission-free stock trading this summer. The new lines are growing quickly, but the company still loses far more money than they bring in. Investors looking for more stocks in this space can find Gemini in our recent list of 9 Best Bitcoin Stocks to Buy Now.
Cards and Staking Now Lead Revenue
The shift shows in where the money comes from. Services revenue and interest income, led by the credit card and staking, now outweigh exchange revenue, which shrank as customers traded far less. Card revenue alone climbed 231% from a year earlier.
Gemini’s edge is its pair of licenses from the Commodity Futures Trading Commission, one to run a contract market and one to clear trades. Its own clearinghouse went live this summer, so it can now settle its prediction contracts in-house. Prediction market volume set a record in each month of the quarter, though revenue from it was only $0.5 million. For investors looking to add crypto exposure, our list of 7 Best Crypto Exchange Stocks to Buy Following Bitcoin’s Recovery covers more names.
Gemini cut staff and left Europe and Australia earlier this year, and its operating loss improved for a third straight quarter. Revenue also grew about 14.8% year over year over the past three years, so the second-quarter pace is a clear step up, though from a small base.
A Fraud Loss Shows the Card Risk
Card growth came with a $16.1 million provision for credit losses in the second quarter, which Gemini linked to an identity fraud event found earlier this year. Management said the higher provision is concentrated in the accounts tied to that event, but the card book has grown sharply, so more is at stake if fraud returns.
Cash is tighter too, since Gemini ended June with $188.6 million, down from $252.2 million at the end of 2025. Over the past 12 months, its operating margin was negative 293.27%, so operating losses were far larger than sales. The fraud charge and the cash drain don’t erase the growth, but they limit how much credit the new businesses earn until losses shrink faster.
Investors Cannot Price Gemini on Earnings
Gemini has no meaningful forward P/E, which compares the share price with expected earnings per share and only works when profits are expected. The median for its sector is 10.88, so the usual yardstick doesn’t fit here, and the stock is priced on whether the new businesses scale rather than on earnings.
Thirteen hedge funds held the stock in the second quarter of 2026, up from 12 in the first, so the group holding it grew even as losses continued. That count comes from quarterly filings, so it lags events. If you’re curious what else hedge funds favor, check out 10 Best US Stocks to Buy Under $20: Ranked by Hedge Funds.
Short sellers borrow shares and sell them, hoping to buy them back cheaper, so a short position is a bet on a falling price. Short interest stands at 22.13% of shares outstanding, which means more than a fifth of the company is sold short. That is why the resale filing stands out, since up to 7,142,857 shares could reach the market, though the investor doesn’t have to sell. If you own the shares, you hold a company valued on its plans while a large group of traders wagers against them.
So can card revenue outrun the losses? Not yet, because the card book that drove the growth also produced the fraud charge, and operating losses remain far larger than sales. The thing to watch in the next quarterly report is credit losses on the card portfolio. If they fall while the operating loss keeps narrowing, the new businesses can carry the cost base.
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This article is originally published at Insider Monkey.
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