Gemini’s (GEMI) Shares Fall Further Below IPO Price as Crypto Stocks Struggle

The stock of cryptocurrency exchange Gemini (GEMI) continues to decline a little more than a week after its heavily hyped initial public offering (IPO).

GEMI stock is down 2% on Sept. 22 and trading at $23.60 per share. The crypto exchange run by twin brothers Cameron and Tyler Winklevoss went public on Sept. 12, finishing trading that day 15% above its IPO price of $28. However, it’s been all downhill since, with Gemini’s shares now more than 15% below their IPO price and sinking fast.

Analysts are chalking up the poor performance to a combination of issues. These include sinking prices for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), as well as Gemini’s poor financials. While the company’s revenue rose 45% in 2024, it remains unprofitable and most recently reported a net loss of $282.5 million for the six months ended June 30 of this year.

Not Alone

However, Gemini is not the only cryptocurrency stock to struggle currently. Shares of rival exchange Coinbase Global (COIN) are down 3% and Robinhood Markets (HOOD) is down 1% on Sept. 22. The share prices are dropping alongside the price of Bitcoin, which is down 3% and trading at $112,400.

Bullish (BLSH), another cryptocurrency stock that recently went public, is down 5%, even after that company recently reported strong financial results. Analysts say the pullback in crypto stocks mirrors the one in BTC and that most crypto stocks have high valuations, with Coinbase trading at almost 45 times earnings estimates for this year and Robinhood’s price-to-earnings ratio at 75.

Is Bitcoin a Buy?

It’s too early for Wall Street firms to offer ratings and price targets on Gemini’s stock. So instead, we’ll look at the three-month performance of Bitcoin. As one can see in the chart below, the price of BTC has risen 9.19% in the last 12 weeks.