Gemini Still Seen as a “Hidden Gem” Despite Falling Share Price
Crypto exchange Gemini (GEMI), led by the Winklevoss twins, is still considered a strong company by analysts at Mizuho, even though its stock price has dropped sharply since its IPO in September.
According to Google Finance, Gemini’s share price closed at $13.80 on Wednesday, down about 57% since it went public. Compared to the S&P 500, the stock also fell around 17% in the third quarter. Despite this, Gemini reported a 52% jump in revenue in its first quarterly results as a public company.
Mizuho analysts kept their “outperform” rating for Gemini and maintained a $30 price target.
They believe Gemini still has strong potential because it is focusing on two major growth areas — prediction markets and business (SMB) payment cards. The company is currently seeking the necessary licenses to run prediction markets, which Mizuho compared to the Winklevoss twins’ early adoption of Bitcoin in 2012.
Earlier this year, Gemini applied to the Commodity Futures Trading Commission (CFTC) for approval to operate a derivatives exchange. This new platform, now under review, could host prediction contracts, according to Bloomberg.
Gemini also plans to introduce a credit card for small and medium-sized businesses. Its existing card program already has over 100,000 accounts and handled $350 million in transactions in the latest quarter, with 64,000 new sign-ups.
Although Gemini’s marketing costs rose by $17 million compared to the previous quarter, most of that spending was for new customer promotions, which analysts described as a smart investment.
Mizuho highlighted Gemini’s advantages, including:
- A user-friendly app that supports trading, staking, and DeFi access
- High security and strong regulatory compliance
- Rapid user growth
However, analysts warned that crypto market volatility and potential changes in regulation — especially around securities, stablecoins, or exchange licenses — could pose risks for Gemini’s future performance.
