Gemini, the crypto exchange cofounded by Tyler and Cameron Winklevoss, saw its share price slide significantly on Tuesday. That followed the company reporting third quarter losses of $6.67 per share, which is more than double what analysts expected. Gemini shares dipped more than 17% to a low of $13.88 in the morning following the announcement.
The earnings are Gemini’s first since it went public in September. The losses for the company come as it tries to expand its offerings beyond just being a crypto exchange, where people can buy and sell popular cryptocurrencies like Bitcoin and Ethereum. Gemini seeks to build a “super app” to connect the world of traditional finance and crypto. However, costs related to its IPO and to marketing contributed to Gemini’s losses. The company’s struggles coincide with a larger downturn for crypto in the past month or so.
Gemini reached an all-time high of $45.89 the day of its IPO launch in September, and is down roughly 70% since then.
“In our view, GEMI delivered weaker quarterly results, primarily driven by higher expenses across categories,” said James Yaro, equity research vice president at Goldman Sachs, in a report released on Tuesday. “With crypto market cap down 10% [so far] in 4Q, this weighs on asset level-driven revenue streams.”
The Winklevoss twins – widely known for their legal dispute with Meta founder Mark Zuckerberg popularized by the movie The Social Network – have long been prominent in the crypto industry. In 2013, they were the first to apply for a spot Bitcoin ETF with the Securities and Exchange Commission. They founded Gemini in 2014, making it one of the longest-running US crypto companies. The exchange that dominates the crypto market, Coinbase, generated almost 40 times more revenue than Gemini did in the third quarter. But in the last year, Gemini has grown faster than Coinbase.
Cameron Winklevoss spoke to the long-term vision of his company in an earnings call on Monday.
“[Our first quarter as a publicly traded company] represents only the beginning of our next journey,” he said. “This quarter marked a significant step forward in our mission.”
Circle, another newly-public crypto company, will report earnings for the first time on Wednesday at 8am ET.
This story was originally featured on Fortune.com
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