The Gemini Space Station, which had been heavily shorted, experienced a significant surge in premarket trading following a $100 million investment from Tyler and Cameron Winklevoss. The Winklevoss twins purchased Class A shares at $14 each in a bitcoin-funded transaction.
After closing at $5.26 on Thursday, GEMI shares rose by 20% in premarket trading. However, the stock is still down 47% year-to-date.
With short interest at 21.5% of the float, approximately 8.3 million shares are at risk of a squeeze due to the 5.3 days to cover ratio on any sustained upside momentum.
“We believe the market has significantly undervalued Gemini, and that this investment will allow us to set up the company for its next phase of growth,” stated CEO Tyler Winklevoss.
Winklevoss added, “Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company. This investment will help fuel that ambition and set Gemini up for long-term success.”
In the first quarter, GEMI’s loss decreased to $109 million from $149 million the previous year, while revenue saw a 42% increase to $50 million, driven by service growth such as credit cards. The exchange went public in September 2025 and is currently trading at a significant discount of 83% from its $28 listing price.
Analyst comments (from Bloomberg):
Evercore ISI analyst Adam Frisch (in line, PT $5)
If it weren’t for the strategic investment, the stock “would likely be down on the print as key metrics like user and revenue reacceleration fell well short of pre-IPO expectations”
“The strategic investment is the headline and should support the stock, but we do not view the underlying print as encouraging as fundamentals are not yet reaccelerating”
Mizuho analyst Dan Dolev
Truist Securities analyst Matthew Coad (hold, $5)
- While Gemini’s 1Q results were better than feared, “the capital injection may alleviate balance sheet concerns.”
Analyst ratings:
The crypto exchange went public in September 2025 and is currently trading at an 83% discount from its $28 listing price.