Gemini IPO raises $425M as oversubscribed debut puts crypto back in Wall Street’s sights

13 September 2025

A debut that reset expectations

Twenty times oversubscribed. That’s the kind of demand few tech listings see these days, and it’s what greeted Gemini Space Station Inc. as it went public. The Gemini IPO priced at $28 a share, above an already raised range, pulling in $425 million and valuing the cryptocurrency exchange at about $3.3 billion. For a sector that’s been declared “over” more times than anyone can count, the message from investors was blunt: crypto market infrastructure is back in favor.

Gemini sold 16.7 million shares in the offering, with books absorbing more than 15.2 million during the process, according to deal terms shared with investors. That strong bid helped push pricing well past the initial $17–$19 range, then through a revised $24–$26 range, and finally to $28. The shares begin trading on the Nasdaq under the ticker GEMI, a straightforward signal that this is a mainstream stock-market story now, not a fringe experiment.

Goldman Sachs and Morgan Stanley led the underwriting syndicate, another tell for where the center of gravity has moved. The banks also received 30-day overallotment options—452,807 shares for Goldman and 380,526 for Morgan Stanley—that can be used to stabilize trading or expand the deal if demand keeps up. At the offer price, exercising those options could add roughly $23 million to proceeds.

On simple math, a $28 price and a $3.3 billion market value imply a basic share count a touch under 118 million. That sets a reference scale for how public investors are sizing up Gemini today versus other listed market venues and fintech names. It also gives analysts a base to model what matters most from here: volumes, take rates, and operating leverage through the cycle.

Founded in 2014 by Tyler and Cameron Winklevoss, Gemini built a reputation as a security-first, compliance-focused exchange—a pitch aimed at institutions and cautious retail users. The platform supports trading in more than 70 cryptocurrencies and has branched into derivatives and other digital-asset services. The goal: to act less like a trading app and more like a full-service financial shop for digital assets, from spot markets to more sophisticated products.

The timing dovetails with a thaw in sentiment. In the past year, the arrival of spot Bitcoin ETFs in the U.S. pulled billions into the asset class and tightened the link between crypto and traditional portfolios. Trading volumes rose, spreads improved, and the business of running regulated crypto infrastructure looked investable again to a broader pool of capital. Gemini’s deal harnessed that tailwind.

None of this means smooth sailing. Crypto is famously cyclical, and the exchange business magnifies that cycle. When prices cool, volumes fade, and fee revenue can contract fast. Pricing pressure is real too: as markets mature, take rates tend to fall, forcing platforms to grow volumes, launch higher-margin products, or diversify into custody, prime brokerage, and data services. Gemini’s move into derivatives is one answer; building out institution-friendly services is another.

The success of the offering also underscores a deeper shift: Wall Street’s gatekeepers are comfortable putting their names on crypto deals when the company profile lines up with what public markets want—clear governance, clean financial controls, visible compliance, and a product set that can scale without constantly fighting regulators. Having Goldman Sachs and Morgan Stanley atop the cover checks several of those boxes for investors who care about who is willing to stand behind the transaction.

For skeptics, two data points are hard to wave away. First, the deal was more than 20 times covered. That’s not a niche crypto crowd; it’s broad-based demand across institutions and retail allocations. Second, the premium pricing and $3.3 billion valuation don’t happen unless investors see a path for growth that justifies buying in at the top of the range. You may dislike the asset class, but the market is paying for the pipes and tolls that move it.

What happens to the cash? Companies at Gemini’s stage typically use IPO proceeds to fatten capital buffers, invest in security, expand internationally, secure licenses in new markets, and scout acquisitions. In crypto, those uses carry extra weight. Strong balance sheets can reassure counterparties after years of high-profile failures elsewhere. Bigger compliance budgets make it easier to keep regulators onside. And buying smaller specialists—whether in derivatives, custody, or risk tech—can accelerate product roadmaps.

The mechanics of the deal matter too. Oversubscription in a book-built IPO is a signal, but it’s also a tool. Banks build momentum by tightening the range as orders pile up, nudging hesitant accounts to get in before the price moves again. Ending well above the initial range tells you they didn’t struggle to find real demand. The overallotment option gives the banks stock to sell short at the offer price and later cover by buying in the market or exercising the extra shares, helping smooth early volatility. Expect an active hand in the first weeks.

Then there’s the lock-up question. Many IPOs impose 180-day restrictions on insiders and early investors, limiting supply until the market has time to price the story. When those lock-ups expire, added shares can weigh on the stock unless fundamentals have improved or new buyers step in. Investors will look closely at any lock-up schedule, even if the debut momentum is strong.

To place Gemini in context, consider Coinbase’s 2021 direct listing, which turned the exchange business into a public-market shorthand for crypto cycles. Volumes surged with bull markets and cooled in downturns, and the stock tracked that rhythm. If Gemini executes, it could give markets a second liquid benchmark for how different strategies—derivatives mix, institutional focus, international expansion—affect earnings through the cycle. Two comps are better than one when pricing risk.

Competition is the other big axis. Binance dominates global crypto spot volumes but faces regulatory constraints in multiple jurisdictions. Kraken has long signaled interest in a listing, especially with a heavier derivatives tilt. Traditional brokers and fintechs keep adding crypto access, squeezing fees at the edges. For Gemini, the hedge is product depth, trust with institutions, and the ability to operate cleanly wherever it lists tokens and derivatives.

Regulation will shadow every step. In the U.S., agencies continue to test boundaries around what counts as a security, how staking and lending should be treated, and where crypto derivatives can be offered. Abroad, frameworks are clearer: the EU’s MiCA regime is phasing in, the U.K. is building a more explicit rulebook, and Hong Kong has reopened to licensed retail trading. Companies that can juggle those maps have an edge, but compliance costs will rise.

Investors are also watching operational risks. Cybersecurity remains existential for exchanges. Custody liabilities, insider controls, and segregation of customer assets are non-negotiable after the lessons of recent years. The flipside is that platforms with discipline in these areas can win mandates from institutions that require fail-safe processes before they move size.

The Winklevoss factor will draw attention, but the market will judge on numbers. Think of the model in layers: take rate times trading volume for base revenue; mix shift into derivatives for better margins; subscription-like streams from custody and institutional services to smooth the cycle; and disciplined cost control to hold operating leverage. If spot and derivatives volumes stay healthy, that stack can compound. If markets slow, the margin for error narrows quickly.

So what should investors track in the first two quarters as a public company? A few markers stand out:

• Volume share across spot and derivatives vs. peers; market share gains matter more than absolute market direction.
• Take-rate trends; even small shifts move revenue materially at scale.
• International licensing progress; new jurisdictions open new customer funnels.
• Product cadence; derivatives breadth, risk tools, and institution-friendly features drive stickiness.
• Expense discipline; headcount and tech spend should scale sensibly with revenue.

The listing also reopens a pipeline. If Gemini trades well, expect renewed chatter around other crypto companies heading for the public markets. Kraken has explored options. Stablecoin issuer Circle has pursued a listing path. Miners and infrastructure firms are already public. A successful run for GEMI would set a clearer valuation map and could pull more prospectuses off the shelf.

For now, the signal is clear: mainstream capital is ready to fund crypto’s core infrastructure when the fundamentals align. That doesn’t erase the sector’s volatility or regulatory friction. It does say that the public markets see exchanges—the toll roads of digital assets—as businesses with real cash flow potential and defensible moats if they keep execution tight.

High demand, top-tier banks, and a premium price tell one story. The next chapters will be written in quarterly updates: did volumes hold up, did derivatives deepen margins, did new geographies come online without regulatory surprises? If the answers land the right way, Gemini’s debut won’t just be a win for one company. It will be a template for how crypto firms make the jump from private promise to public discipline.