The stock of Gemini (GEMI) is down 8% after the cryptocurrency exchange reported its first financial results since going public earlier this year.
The company, founded by twin brothers Tyler and Cameron Winklevoss, reported a worse-than-expected third-quarter loss, sending Gemini’s share price sharply lower.
The New York City-based crypto exchange announced a net loss of $159.5 million U.S., or $6.67 U.S. a share. That was double the $3.24 loss-per-share forecast on Wall Street.
Gemini reported that its revenue in this year’s third quarter more than doubled from a year earlier to $50.6 million U.S.
Management blamed the net loss on heavy spending related to marketing and the company’s initial public offering (IPO) held in September.
Increased trading activity and new products such as a crypto rewards credit card boosted revenue growth, which outpaced rival Coinbase’s (COIN) 55% growth in the same period.
Gemini said in its earnings release that it is building a multi-product “super app” that goes beyond crypto trading.
The new super app will apparently include a predictions market for betting on sports and political events.
“We’re very excited about these markets. We think it’s very early days,” said Cameron Winklevoss on the company’s earnings call with analysts and media.
Since its September IPO, GEMI stock has declined 47% to trade at $16.84 U.S. per share.
