Gemini stock drops 80% since IPO, fueling acquisition rumors

Gemini has seen its valuation fall from a peak of $4 billion to $753 million, an 80% decline, amid shrinking trading volumes, revenue, and platform assets. Second-quarter exchange revenue dropped 38% year-over-year to $12.5 million, while spot trading volume fell 66% to $3.8 billion. Speculation regarding a potential acquisition has emerged, with ARK Invest's Lorenzo Valente suggesting that Hyperliquid could acquire Gemini to gain access to the U.S. regulated market. While the Winklevoss twins hold 94.5% of voting power, simplifying potential negotiations, there is no evidence that Hyperliquid is actively pursuing a deal. Potential buyers may still value Gemini's regulatory licenses despite the decline in core business. Gemini declined to comment on the reports.