GEMI Filings — Gemini Space Station, Inc. - FilingSpy
GEMI
Gemini Space Station, Inc.
A crypto platform founded in 2014 by identical twin brothers Cameron and Tyler Winklevoss, Gemini offers spot and derivatives trading, custody, staking, the GUSD stablecoin, a credit card, and CFTC-regulated prediction markets. Its name comes from the Latin word for "twins," nodding to its founders—who funded it partly with money from their Facebook legal settlement. It became the world's first licensed exchange to list ether in 2016.
Credit card revenue more than tripled but rising credit losses and stock-based compensation kept the quarterly net loss above $100 million.
The credit card business is scaling fast, but it is also generating larger losses. rose 37% to $45.5 million, driven by a 231% increase in credit card revenue, yet the net loss remained at $107.7 million as credit card loss provisions and grew. The company is funding its operations with fresh debt and bitcoin, ending the quarter with $188.6 million in cash.
Key takeaways
rose 37% to $45.5 million, as a 231% increase in credit card revenue to $16.2 million and a 671% increase in OTC revenue to $4.7 million more than offset a 38% decline in exchange revenue.
The net loss was $107.7 million, compared to $133.2 million a year ago, as a $14.4 million increase in credit card loss provisions and an $18.6 million increase in from IPO awards offset a $7.2 million reduction in cash compensation from the February 2026 workforce reduction.
Transaction losses rose 467% to $20.1 million, driven by higher expected credit losses on the maturing credit card portfolio, a fraud-related cohort, and $2.2 million in staking-related operational losses.
What changed
The rate of cash consumption remained high: was a $51.4 million outflow this quarter, compared to a $54.4 million outflow in Q1 2026, and cash and equivalents fell to $188.6 million. The post-quarter $100 million bitcoin noted in Q1 was completed during this quarter.
Credit card portfolio losses, flagged as a watch item last quarter after transaction losses rose 169%, accelerated further: transaction losses rose 467% to $20.1 million, driven by a $14.4 million increase in credit card loss provisions and a fraud-related cohort.
What to watch
Whether the credit card loss rate stabilizes as the portfolio matures, or continues to rise and consumes a growing share of credit card .
The trajectory of against the $188.6 million cash balance, and whether the new Galaxy loan and bitcoin meaningfully extend the cash runway.
The impact of the February 2026 restructuring on operating expenses in subsequent quarters, and whether the $7.2 million reduction in cash compensation this quarter is sustained.
Section summaries
Management's Discussion and Analysis
Revenue rose 37% to $45.5M in Q2 2026, driven by credit card and OTC growth, but net loss remained at $107.7M amid higher credit losses and stock-based compensation.
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Total increased 37% to $45.5M for Q2 2026, primarily from a 231% surge in credit card revenue to $16.2M and a 671% jump in OTC revenue to $4.7M, which offset a 38% decline in exchange revenue to $12.5M.
was a $51.4 million outflow, and the company ended the quarter with $188.6 million in cash and equivalents after completing a $100 million paid in bitcoin and entering a new $75 million loan with Galaxy.
loss widened to $74.0 million from $51.9 million a year ago, as growth was outpaced by higher operating expenses, particularly credit card rewards and technology infrastructure costs.
The cost of the international wind-downs, which recorded $6.5 million in severance in Q1, contributed to a $7.2 million reduction in cash compensation this quarter, but the full expense and any operational disruption remain to be seen.
The company terminated its NYDIG agreement and entered a new $75 million loan with Galaxy, shifting its financing structure while adding fixed-rate borrowings of $221.9 million at a 7.2% weighted average rate.
Any margin calls on the Galaxy financing agreement, which is collateralized by bitcoin, if bitcoin prices decline materially.
Exchange fell due to a 42% drop in retail revenue on lower trading volumes, while institutional exchange revenue grew slightly from improved .
Operating loss widened to $76.9M from $65.4M, as a $18.6M increase in tied to IPO awards and a $14.4M rise in credit card loss provisions more than offset a $7.2M reduction in cash compensation from a February 2026 workforce reduction.
Transaction losses surged 467% to $20.1M, driven by higher expected credit losses on a maturing credit card portfolio and a fraud-related cohort, plus $2.2M in staking-related operational losses.
The company completed a $100M paid in bitcoin, terminated its NYDIG agreement, and entered a new $75M loan with Galaxy, ending Q2 with $188.6M in cash and equivalents.
loss widened to $74.0M from $51.9M, as growth was outpaced by higher operating expenses, particularly credit card rewards and technology infrastructure costs.
Quantitative and Qualitative Disclosures About Market Risk
The company faces interest rate risk on credit card receivables and digital asset price risk on inventory, while foreign currency exposure is limited to SGD operations after a planned UK exit.
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A 100 change in the prime rate would impact interest income on credit card by approximately $2.2 million based on average balances during the six months ended June 30, 2026.
Fixed-rate borrowings of $221.9 million at a 7.2% weighted average rate expose the company to higher upon maturity or refinancing if rates rise.
A hypothetical 50% change in digital asset prices would impact the value of unencumbered crypto holdings by $36.2 million as of June 30, 2026, representing 5% of total assets.
on related-party digital asset borrowings is payable in U.S. dollars, so digital asset appreciation increases the dollar cost of interest while decreases it.
The company is winding down UK operations, which is expected to reduce GBP exposure, leaving SGD as the primary foreign currency risk from loss-making international subsidiaries.
A financing agreement with Galaxy is collateralized by bitcoin, and material declines in bitcoin prices may trigger margin calls requiring additional collateral or repayment.
From time to time, we may be subject to various legal proceedings and claims that arise in the ordinary course of our business activities. The results of litigation and claims cannot be predicted with certainty. Refer to “Risk Factors—Risks Relating to our Business and Industry—…
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From time to time, we may be subject to various legal proceedings and claims that arise in the ordinary course of our business activities. The results of litigation and claims cannot be predicted with certainty. Refer to “Risk Factors—Risks Relating to our Business and Industry—We are, and may continue to be, subject to material litigation, including individual and class action lawsuits, as well as investigations and enforcement actions by regulators and governmental authorities. These matters are often expensive and time consuming, and, if resolved adversely, could harm our business, operating results, and financial condition,” “—Disputes with our users could adversely impact our brand and reputation and our business, operating results, and financial condition” and Note 22. Commitments and Contingencies to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for a description of material legal proceedings to which we are a party.
Revenue concentration in Bitcoin/Ether, regulatory uncertainty, and competitive pressures from less-regulated entities pose material risks, while new products face adoption hurdles.
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Total is substantially dependent on digital asset prices and transaction volumes, which are highly volatile; a sustained decline in Bitcoin, Ether, or Solana prices or trading activity would materially reduce revenue.
A relatively small number of institutional account for around half of trading volume, and their loss or reduced activity could significantly harm operating results.
The company faces intense competition from unregulated or less-regulated foreign exchanges, decentralized exchanges (), and , which can offer products the company cannot due to its regulatory compliance burden.
New offerings Gemini Predictions and Gemini Stocks may fail to gain sufficient user adoption or generate meaningful , requiring significant investment with no guaranteed return.
An extensive, evolving regulatory landscape creates uncertainty around whether digital assets or services are securities, exposing the company to potential enforcement actions, fines, or forced product changes.
The February 2026 , involving an international wind-down, workforce reduction, and senior leadership departures, may cause operational disruptions and fail to achieve anticipated cost savings.