Now they are learning that running a public crypto exchange comes with its own headaches.
Gemini Space Station Inc., the New York-based exchange run by Tyler and Cameron Winklevoss, reported another quarterly loss on Thursday. It is the fourth straight loss since the company went public in September 2025, and the numbers show a business caught between shrinking assets and a serious cost-cutting push.
Operating losses narrowed by $17.2 million, or 18%, from the prior quarter, which shows the cost cuts are starting to bite in the right way.
In plain terms, Gemini is spending less and trying to do more with fewer people.
The revenue side looks healthier. But here is the catch: revenue is growing while the core business is shrinking.
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The value of assets on the exchange tumbled 54% to $8.4 billion. The company blames lower crypto prices and institutional customers pulling their money out. That is a brutal combination, and it highlights the problem with being a smaller exchange in a market dominated by giants like Coinbase.
Size matters in the exchange business, and Gemini is comparatively small. When Bitcoin fell from its October record, it hit every crypto company. But smaller players feel it more because they have less cushion.
Mizuho analyst Dan Dolev sees both sides of the trade. He points out that Gemini's heavy crypto focus means it faces "similar headwinds like Coinbase." But he also thinks that when crypto bounces back, Gemini could have more upside than other next-generation brokers. As he put it, the stock will have "more torque" when the market turns.
In May, the Winklevoss brothers put $100 million of their own money into the loss-making exchange. That is a serious vote of confidence, or at least a serious commitment to making this work.
CEO Tyler Winklevoss says the company is building revenue streams that do not depend so much on crypto markets. It is trying to move into prediction-market products and stock trading. So far, prediction-market revenue brought in just $500,000 in the quarter. That is a tiny number, but it shows the direction.
"The results reflect our ongoing efforts to reduce operating expenses while diversifying revenue," Winklevoss said in a statement.
Investors are not cheering yet. Gemini's stock fell around 6% in after-hours trading, and it is down around 85% since the September 2025 IPO. That is a rough ride for anyone who bought early.
The bottom line: Gemini is making real progress on costs, and the revenue growth is encouraging. But the shrinking asset base is a warning sign that the core business is still struggling. The company is betting that new products and leaner operations will carry it through until crypto rebounds.
For investors, the takeaway is simple. This is a turnaround story still in its early chapters. The Winklevosses have money in the game and a plan to diversify. Whether that plan works depends on how fast they can build those new revenue streams - and when, not if, the crypto market turns around.
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