Gemini Ups IPO Offering To $433M Ahead Of Nasdaq Debut, Aims For $3B Valuation
Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, has upped its initial public offering to $433 million ahead of its public debut on Nasdaq on Friday and aims for a valuation of $3 billion.
In an updated prospectus filed with the US Securities and Exchange Commission (SEC) on Sept. 9, the company said that it intends to sell its stock in a price range of $24 and $26, up from the initial $17 to $19.
Gemini will offer approximately 16.67 million shares for sale.
Gemini Secures Nasdaq Listing And Backing
The company has already confirmed that its public listing will take place on Nasdaq, which also has agreed to purchase 2.11 million shares for $50 million via a private placement.
Through that deal, Gemini’s institutional clients will gain access to Nasdaq’s Calypso platform to manage and track trading collateral. Meanwhile, Nasdaq’s clients will get to use Gemini’s custody and staking solutions.
Gemini’s IPO Comes As Net Loss Increases
In the IPO filing, Gemini disclosed that its total revenue stood at $68.61 million for the six months that ended June 30. This was a decrease of $5.71 million from the same period last year.
In addition to that, the company’s net loss increased from $41.37 million to $282.47 million during the same period.
There was, however, an increase in trading activity on the crypto exchange. In those six months, trading volumes soared to $24.8 billion, marking an increase of nearly 50% from the same time last year.
More Crypto Companies Looking To Go Public Under Trump Admin
On Friday, Gemini will become the latest in a number of crypto companies that have either gone public or are looking to go public in an effort to capitalize on the pro-crypto Trump Administration.
Already this year, USD Coin (USDC) issuer Circle has made its public debut, followed by digital trading platform Bullish, which is backed by PayPal co-founder Peter Thiel.
Meanwhile, Kraken is reportedly looking to raise $500 million at a $15 billion valuation.
There has also been a growing appetite for crypto companies from Wall Street, as seen with the first-day performances of the crypto companies that have gone public this year.
When Circle started trading on the New York Stock Exchange (NYSE), it posted a debut gain of 167%.
Circle share price (Source: Google Finance)
Circle shares rose over 4% in the last 24 hours, data from Google Finance shows.
Similarly, Bullish saw strong gains of 218% on its listing debut.
In addition to public listings, some crypto companies have also been added to well-known indexes.
In May, US-based Coinbase became the first digital asset firm to enter the Standard and Poor’s 500 index, which tracks the top 500 American companies.
The leading Bitcoin treasury company Strategy, led by BTC maxi Michael Saylor, has met all of the criteria needed for inclusion in the S&P 500 index, but lost out to companies including Robinhood Markets in a recent rebalancing.
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