Investors sold off shares in cryptocurrency exchange Gemini on Monday, sending the stock to an all-time low after the bell after the company’s first-quarter results revealed losses from listing costs.
Gemini on Monday announced its first third-quarter results since going public in September, reporting revenue of $50.6 million, more than doubling from $24.5 million in the year-ago period.
However, the company posted a net loss of $159.5 million, widening from $90.1 million in the year-ago period, primarily due to costs related to compensation and advertising ahead of the initial public offering.
Gemini (GEMI) stock closed Monday’s session up 4% at $16.84, but plunged to a low of $14.75 after the bell. The stock recovered slightly, ending after-hours trading at a record low of $15.80, down 6.2%.
Gemini’s stock price has fallen about 40% since it went public at $28 a share on September 12, as the cryptocurrency market failed to sustain gains that hit an all-time high in early October.
Gemini bets on “super app” ambitions
The stock price drop came after Gemini president and co-founder Cameron Winklevoss suggested to investors during an earnings call that the exchange is betting on building a cryptocurrency “super app” to aggregate multiple products.
“We’re really excited about building towards a super app,” he said. “This is the future of on-chain. We are an on-chain company and this is our wheelhouse.”
“Our view is that the market is all on-chain. Soon you will be able to hold stablecoins, tokenized stocks, and tokenized dollars via digital products all within one app,” Winklevoss said. “We are making very good progress there.”
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Winklevoss added that the company’s goal is to develop its own products rather than partner with or acquire other companies.
Prediction markets are like Bitcoin in 2012: Winklevoss
Winklevoss added that he is “very excited” that the exchange is adding prediction markets, which typically allow users to bet on the outcome of events ranging from sports to politics.
“This idea that you can build a market on essentially any type of event is attractive and it’s truly an endless opportunity,” he added. “We’re working to get them all over the world.”
“We think this is very early days. It reminds me a lot of what it felt like when we first discovered Bitcoin in 2012.”
Gemini said it has applied to become a designated contract market with the Commodity Futures Trading Commission to provide a prediction market, corroborating reports on Wednesday that it is considering entering the space.
“Once the government reopens, we will continue to pursue those applications and hopefully bring these products to market soon thereafter,” Winklevoss said.
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