Crypto Exchange Gemini Teases IPO

Cryptocurrency exchange Gemini may be considering a initial public offering (IPO). In a interview with Bloomberg, Cameron and Tyler Winklevoss, co-founders of the exchange, said they were open to the idea of ​​going public. “We are watching the market and also having internal discussions about whether this makes sense for us at this point,” said Cameron Winklevoss, Gemini president.

While analyst firms and publications have made revenue estimates on its competitor Coinbase, not much is known about Gemini’s finances. The company recently increased its workforce to 350 employees and announced that it had surpassed $10 billion in digital assets under custody. The Winklevoss brothers are the main investors in the company.

If the New York-based exchange decides to mine the public markets, it will become the third crypto firm to do so in recent times. Coinbase, North America’s largest cryptocurrency exchange by trading volume, has already filed with the Securities and Exchange Commission (SEC) for an IPO. Bakkt, a crypto trading platform backed by NYSE owner Intercontinental Exchange, Inc. (ICE), went public with a ad hoc acquisition company (SPAC) last week at a valuation of $2.1 billion.

A good time to go public?

Part of the reason for the public listings of crypto companies is a change in circumstances in their markets. After several years of crisis, bitcoins (BTCUSD) prices have soared past $40,000 this year, breaking its previous all-time high of $20,000. Retail investors were believed to have driven past price increases in cryptocurrency markets, but news reports credit institutional participation with the latest push. It means there is more liquidity in the crypto markets compared to the 2017 bull run, making them less susceptible to wild swings.

The infrastructure and capabilities of crypto exchanges have also advanced, allowing them to integrate a wider variety of clients and trades. Macroeconomic instability and the integration of digital currencies into public and private enterprises have also driven the price of Bitcoin higher.

For crypto firms like Gemini, these developments should translate into increased revenue. The exchange has announced partnerships in the past to encourage retail transactions using crypto and launched specific products, such as custodial solutions, intended for institutional investors. With no public data or cost estimates, however, it’s hard to guess whether these moves have moved Gemini’s revenue needle.

Meanwhile, the exchange announced the launch of another product to boost its revenue and user base. The Gemini credit card is the crypto equivalent of a regular cashback credit card in which customers will receive up to 3% back in Bitcoin or other cryptocurrencies for each purchase. To store cryptocurrency, customers will need to create accounts on Gemini’s cryptocurrency exchange, increasing its user base.