Gemini's shares have lost roughly 80% since the company went public, shrinking its market capitalisation from a peak of about $4 billion to roughly $753 million. The decline follows a 38% drop in second‑quarter exchange revenue to $12.5 million, a 66% fall in spot‑trading volume to $3.8 billion, and a reduction in assets on the platform to $8.4 billion from $18.2 billion.
The Winklevoss twins, who founded Gemini, control about 94.5% of the firm’s voting power, meaning any potential sale would require their approval. While no formal bid has emerged, ARK Invest’s digital‑assets research director Lorenzo Valente suggested on X that Hyperliquid, an offshore perpetual‑trading platform, could acquire Gemini to gain a regulated U.S. gateway for futures and prediction markets.
Industry observers note that Gemini’s value now lies more in its regulatory licences, customer base and custody infrastructure than in its shrinking spot‑exchange business. A venture‑capital investor told CoinDesk that the licences would be costly and time‑consuming for competitors to obtain organically, making them attractive acquisition assets.
The trend mirrors recent crypto‑sector M&A activity. In July, digital‑asset services firm Keyrock purchased BlockFills’ trading assets to add licences and institutional clients. Tokenisation platform Ondo has been exploring a deal worth up to $500 million, while LMAX and B2C2 have also examined strategic transactions to expand regulatory reach.
CoinDesk reported in April that prospective buyers were eyeing Gemini’s closed European and U.K. operations primarily for their licences, rather than a full takeover. Valuation disagreements and the twins’ concentrated voting control have so far prevented any deal from materialising. Gemini declined to comment on the speculation.
If a buyer can persuade the Winklevoss brothers, the acquisition could provide a relatively inexpensive route to a regulated U.S. crypto foothold, but the concentration of voting power also makes a hostile bid virtually impossible.
