Gemini’s $425M Blockbuster IPO Is Double Trouble for Crypto Naysayers

Crypto’s IPO hot streak is showing no signs of cooling after Gemini Space Station GEMI shattered expectations with its Nasdaq debut. The stock closed its first day of trading at $32 per share, a 14% bump from its IPO price. It held those gains on Monday, its first full day of trading.

This is the latest in a string of successful IPOs from an industry that has struggled through a series of high-profile scandals and collapses. Bullish BLSH and Circle Internet CRCL saw huge price jumps following their public debuts. On Thursday, the stock price for blockchain-based lender Figure Technology Solutions FIGR rose over 24% during its first day of trading.

“Many felt the space was lackluster for exits and there weren’t any more potential opportunities for money to be made,” says Christian Kaczmarczyk, a crypto-focused principal at Third Prime. “As of right now, there is exuberance in the space for crypto listings.”

Gemini, founded by Tyler and Cameron Winklevoss, priced its IPO at $28 per share, giving it a fully diluted market cap of $3.3 billion—a 53% discount from its peak $7.1 billion valuation in 2021. But that didn’t temper any excitement for the listing. Gemini first raised its price target from $17 per share to $19 to a range of $24-$26 before landing above that range.

Despite disclosing growing losses, investors clamored for a piece of Gemini’s offering, causing the company to cap the base size of its IPO at 15.2 million shares. It raised $425 million, a 33% increase from the $318 million it initially planned to raise at the top of its target price range.

The IPO followed plans announced Tuesday by Nasdaq to invest $50 million in a private placement at the IPO price—a strong institutional endorsement that undoubtedly added to the momentum.

The listing is also a signal that traditional institutions are getting comfortable with crypto and want more exposure to the asset class. “Owning a piece of an exchange like Gemini lets investors get upside in crypto cyclicality, but in a package they’re more used to,” says Mark Beylin, senior associate at crypto-centric Haun Ventures. “As we’ve seen from the recent Circle IPO, public market investors haven’t had any trouble getting acquainted with these novel crypto-native business models.”

And for Gemini’s early investors, its IPO is validation that they bet on the right horse. “Some of my peers went after names that have ended in complete disaster,” said Sarah Kunst, managing director at Cleo Capital, a backer of Gemini. Kunst said she doesn’t plan to hold on to it forever, as Cleo is an early-stage firm, but she’s bullish on the stock. “I first learned about bitcoin from the twins. I bought my first bitcoin because they were so passionate about it. They’ve been proved correct ever since.”