Gemini’s credit card became its largest individual revenue source in Q2, generating $16.2 million, surpassing exchange trading revenue of $12.5 million. Total revenue rose 37% year-over-year to $45.5 million, and net loss narrowed to $107.7 million. However, card-related transaction losses surged 467% to $20.1 million, and the company set aside $16.1 million for expected card losses. Meanwhile, crypto trading volume fell sharply from $11.3 billion to $3.8 billion, driven by institutional activity decline. Assets held on Gemini dropped to $8.4 billion from $18.2 billion.
Gemini’s second-quarter financial results show a shift in revenue sources as the company’s credit card business overtook its exchange trading division. The credit card generated $16.2 million in revenue, more than triple the previous year, while exchange trading brought in $12.5 million, according to the filing.
Total revenue reached $45.5 million, up 37% from a year earlier, and the net loss narrowed from $133.2 million to $107.7 million. However, the credit card growth came with significantly higher costs, as transaction losses jumped 467% to $20.1 million.
Gemini set aside $16.1 million for expected card losses, compared to just $1.7 million a year earlier, and credit card rewards costs nearly tripled to $8.2 million. The company also identified more fraudulent accounts linked to a group first identified in the previous quarter.
On the exchange side, trading volume dropped from $11.3 billion to $3.8 billion, driven largely by a decline in institutional activity. Institutional volume fell from $9.8 billion to $3.1 billion, and exchange revenue consequently declined 38%.
Custody revenue fell 67% as the value of assets held on Gemini dropped from $18.2 billion to $8.4 billion, which the company attributed to lower crypto prices and customer withdrawals. Despite this, the number of monthly transacting users increased 11% to 580,000.
Over-the-counter trading revenue increased from $611,000 to $4.7 million after several large client transactions, though Gemini cautioned that this level of activity may not continue. The filing also showed that Gemini sold some Bitcoin received through a $100 million private placement to fund operations, but retained 988 BTC worth $57.9 million at the end of June.
