During the September 14 episode of Mad Money, a caller with a five-year time horizon asked whether to add to the position purchased at $26 or sell Gemini Space Station, Inc. (NASDAQ:GEMI). Jim Cramer replied:
Okay, that’s the Winklevoss brothers, and those guys are terrific. I know that they’re really smart guys. Let’s do this. I mean, it’s a crypto play. It’s really down way too low. I would keep it as your spec. I think that they could get that one to go again. They are smart. They might figure it out.
Expanding Service Streams and Revenue Diversification
Gemini Space Station, Inc. operates a regulated cryptocurrency platform providing digital asset trading, custody, derivatives, staking, and credit card services. For the second quarter, the company reported total revenue of $45.5 million, representing a 37% increase year-over-year. The top-line growth was credited to non-transaction segments even as core exchange operations experienced a downturn due to subdued crypto trading conditions across global digital asset markets. Services revenue and interest income surged 117% to $26 million. Credit card revenue expanded 231% to $16.2 million driven by user base growth while staking revenue climbed 50% to $4 million following the expansion of in-house validator capabilities.
Facing Core Exchange Declines and Bottom Line Losses
Despite expansion in non-transaction streams, Gemini Space Station, Inc.’s core operations faced significant headwinds. Exchange revenue dropped 38% year-over-year to $12.5 million, highlighting lower trading volume which fell to $3.8 billion compared to $11.3 billion in the second quarter of 2025. Total transaction revenue fell 15% to $17.8 million.
The company completed its initial public offering in September 2025 at $28 per share, but has traded down into the four-dollar range with a market capitalization of approximately $540 million. Net losses continued with a reported earnings per share of negative $0.89 for the second quarter, missing consensus analyst expectations by $0.18.
Assessing Institutional Ownership and Bearish Positioning
According to the Insider Monkey database, 13 hedge funds held a stake in the company in Q2 compared to 12 in the prior quarter. Meanwhile, short interest stands at 18.42% of the float, highlighting significant bearish skepticism during broader sector headwinds and ongoing net losses.
Long-term investors face a clear trade-off between heavy net losses and a beaten-down stock price versus a growing service business and capable leadership. While the sharp fall from Gemini Space Station, Inc.’s initial public offering price highlights the risks involved, the expanding non-transactional revenue lines and veteran founders mean this speculative play still holds appeal for anyone comfortable with heavy volatility.
READ NEXT: Jim Cramer on Ondas (ONDS): “It’s Not Great, Not Bad” and Jim Cramer Calls Texas Pacific Land (TPL) a “Fantastic Stock”.
