Cryptocurrency exchange Gemini reported a 37% year-over-year increase in second-quarter revenue to $45.5 million, while posting a $107.7 million net loss as exchange trading weakened.
Exchange revenue fell 38% to $12.5 million as trading volume dropped to $3.8 billion from $11.3 billion, the company said Thursday.
Services revenue climbed 149% to $23.5 million, led by a 231% increase in credit card revenue to $16.2 million and a 50% rise in staking revenue to $4 million. Including interest income, services revenue and interest income totaled $26 million.
Meanwhile, transaction losses rose to $20.1 million from $3.6 million a year earlier, primarily due to a $16.1 million provision for credit losses tied to an identity fraud event involving the credit card portfolio. Gemini said the elevated provision was concentrated among affected accounts and did not reflect broader deterioration in the portfolio.
Operating expenses rose 24% year-over-year to $122.4 million, though they fell 15% from the first quarter as the company continued cost-cutting measures announced earlier this year.
Geminis stock price rose 3% during regular trading on Thursday, but fell nearly 5% in pre-market trading on Friday following the earnings release, according to Yahoo Finance data.
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