Winklevoss Capital Bets $100 Million to Transform Gemini Into Markets Giant
Cryptocurrency and prediction markets platform received a $100 million strategic investment from , which is owned by Gemini founders and .
Gemini announced the investment in a Thursday (May 14) in which the company reported that it achieved a 42% year-over-year increase in revenue in the first quarter.
The company said it will use the new funding to fuel its expansion from a crypto company into a markets company.
Tyler Winklevoss, who is Gemini’s CEO, said in the release that he believes the company has been undervalued by the market and that it is set to enter a new phase of growth.
“Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company,” he said. “This investment will help fuel that ambition and set Gemini up for long-term success.”
Cameron Winklevoss, who is Gemini’s president, said in the release that the company has built momentum by diversifying its revenue, which is now accelerating.
“In April, we received our DCO [Derivatives Clearing Organization] license from the CFTC [], which marks a major milestone in our marketplace expansion,” he said. “In addition to our crypto spot marketplace, Gemini now has taken the next step towards building a full-stack, end-to-end marketplace for predictions as well as futures, options and more.”
Gemini reported in the release that the company’s first-quarter revenue increase was driven by growth in services and OTC revenue. Its OTC revenue increased from $100,000 a year ago to $6.3 million, driven by institutional client activity and expansion of its electronic OTC platform, while its services revenue increased 122% year over year.
When Gemini announced its receipt of a DCO license in April, the company said in a that the license allows its Olympus affiliate to act as a clearinghouse for regulated derivatives trading, including prediction markets, and marks the next step in Gemini’s construction of a full-stack end-to-end trading solution for prediction markets and crypto.
Gemini announced in February that it was sharpening its focus on in the United States. Tyler Winklevoss and Camerson Winklevoss said in a that the company is “building a ‘bridge to the future of money and markets’ via a super app.”
