Investors sold shares of cryptocurrency exchange Gemini on Monday, sending them to an all-time low after the bell as the company’s first quarterly results showed losses due to IPO expenses.
Gemini released its third-quarter results on Monday, the first after its September IPO, and reported revenue of $50.6 million, more than double the $24.5 million at the same time a year ago.
The company, however, posted a net loss of $159.5 million, down from $90.1 million a year ago, largely due to costs related to compensation and advertising ahead of its IPO.
Shares of Gemini (GEMI) ended trading Monday up 4% at $16.84, but fell to $14.75 after the bell. The stock rallied slightly to end the after-hours trading session down 6.2% to an all-time low of $15.80.
Gemini’s stock price has fallen about 40% since its IPO at $28 per share on September 12, as the crypto market failed to sustain a rally that peaked in early October.
Gemini bets on the ambition of “super applications”
The stock price drop comes as Gemini Chairman and co-founder Cameron Winklevoss signaled to investors during an earnings call that the exchange was betting on creating a crypto “super app” to bring together multiple products.
“We’re really excited about developing this great app,” he said. “It’s a chain future. We’re a chain company, and that’s our wheelhouse.”
“Our view is that markets are all on-chain. Very soon you will be able to hold a tokenized dollar via stablecoins, tokenized stocks, and digital commodities, all in one app,” Winklevoss said. “We’re making really good progress there.”
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Winklevoss added that the company’s ambition is to create its own products, rather than partnering with or buying other companies.
Prediction markets are like Bitcoin in 2012: Winklevoss
Winklevoss added that he was “very excited” about the exchange’s addition of prediction markets, which typically allow users to bet on the outcome of a range of events from sports to politics.
“This idea that you can essentially create a market on anything, any type of event, is fascinating and a truly limitless opportunity,” he added. “We are working to get these people to live on a global scale.”
“We think this is just the beginning. It reminds us a lot of how Bitcoin felt in 2012 when we first discovered it.”
Gemini said it had filed an application to become a designated contract market with the Commodity Futures Trading Commission to offer prediction markets, confirming a report on Wednesday that it was considering entering the sector.
“Once the government reopens, we hope to continue to pursue this application and hopefully bring these products to market shortly thereafter,” Winklevoss said.
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