Gemini Space Station’s shares jumped over 20% in premarket trading on Friday after Winklevoss Capital Fund purchased $100 million worth of stock at $14, significantly higher than Thursday’s closing price of $5.26, and the exchange reported a smaller-than-expected Q1 loss.
The Winklevoss twins have injected $100 million into their company. Winklevoss Capital Fund, the family investment vehicle of Gemini Space Station co-founders Tyler and Cameron Winklevoss, completed a private placement on Thursday for 7,142,857 Class A shares at $14 each.
The purchasing price is more than 2.5 times Gemini’s Thursday closing price of $5.26 on the Nasdaq.
The market responded as expected. Gemini’s stock rose by over 20% in premarket trading on Friday after the announcement, bolstered by a Q1 report that exceeded revenue and reduced loss forecasts.
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Revenue reached $50.3 million, a 42% increase year over year and above the $47.9 million FactSet consensus, with a loss of 93 cents a share compared to the expected $1.03. Though both figures remain in negative territory for a public exchange, they align with the founders’ demonstration of confidence.
The financing structure is intriguing. The Winklevoss fund paid the $100 million entirely in bitcoin, adding around 1,258 BTC to Gemini’s balance sheet at the predetermined valuation.
This transaction gives Gemini a newly bitcoin-denominated treasury and, in cash terms, strengthens a balance sheet that had been weakened by losses. It also indicates what the founders perceive as the stock’s value floor, something that an open-market purchase at the prevailing $5.26 price would not imply.
Tyler Winklevoss commented with the placement that the market had ‘significantly undervalued Gemini’ and mentioned that the company had ‘achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company.’
This mirrors the narrative Coinbase has advocated for nearly two years: that listed crypto exchanges should be viewed as multi-asset platforms that began with spot crypto.
The reasoning behind this narrative is more complex. Gemini priced its IPO at $28 a share in September 2025, valuing the exchange at approximately $3.3 billion, and raised $425 million in the offering.
Eight months later, the stock spent most of 2026 below its IPO price, with Thursday’s $5.26 close equating to roughly a fifth of its listing valuation. The Q1 2026 results follow pre-IPO filings that revealed a $159 million loss in 2024 and a $283 million loss in the first half of 2025.
Given this context, the founders’ placement serves two purposes. It