Cryptocurrency exchange Gemini has been undergoing a major transformation recently and is experiencing significant changes in both its market share and balance sheet. Tyler Winklevoss, one of the founders of Gemini, states that the general negative perception in the industry makes him optimistic about the future. The Winklevoss brothers are known as one of the leading US-based exchanges with Gemini, which they founded in 2014.
Big Drop in Bitcoin Assets
According to data provided by on-chain analysis company Arkham, there has been a significant outflow of Bitcoin from Winklevoss Capital’s associated crypto wallets in the last year. The balance of the wallets, which had approximately 23,000 BTC in February 2025, decreased to 11,000 BTC as of February 2026. This shows that sales are being made consistently in difficult market conditions.
Rising Costs Despite Growing Revenues
The figures included in the company’s current application documents submitted to the US Securities and Exchange Commission reveal that its net income for 2025 is expected to be between 165 million and 175 million dollars. While there was a significant increase in revenue, which was 141 million dollars the previous year, the number of monthly active users increased by 17 percent to 600,000. However, a much more serious increase in operating expenses is noteworthy. It is calculated that expenses, which were 308 million dollars last year, may reach 530 million dollars in 2025.
Gemini announced that it will reduce its number of employees by a quarter this month due to cost pressure and will withdraw from the UK, the European Union and Australia and focus on the USA and Singapore. While the heads of the operations, finance and legal departments among the company’s senior executives left, Cameron Winklevoss announced that he had assumed control with broader authority; Interim managers were appointed for key positions.
Sharp Decline in Market Share and Valuation
According to market analysis, Gemini’s share in the worldwide cryptocurrency spot transaction volume was 0.6 percent in mid-2025, but dropped to 0.1 percent as of January. It is reported that the market value of the stock exchange, which reached approximately 4 billion dollars after the public offering, decreased below 700 million dollars.
According to information provided by Bloomberg, it is stated that in its new strategy, Gemini has pivoted to the prediction market platform under the supervision of the US Commodity Futures Trading Commission and also focused on custody and credit card services.
While this entire restructuring process is marked by difficult market conditions, it is observed that some investors with high risk appetite maintain their positions in Bitcoin. Japan-based Metaplanet and US-based institutional investor Strategy continue to show their belief in cryptocurrencies by continuing their Bitcoin investments.
