Gemini’s exchange business is shrinking. Its regulatory licenses may be the real prize
Gemini’s market value has fallen from about $4 billion to $753 million as second-quarter exchange revenue dropped 38% year over year, trading volume fell 66%, and platform assets declined. ARK Invest’s Lorenzo Valente suggested Hyperliquid could buy Gemini to gain a regulated U.S. gateway, though there is no sign it is pursuing a deal. Gemini’s licenses, customer base and custody infrastructure may appeal to buyers seeking faster market access, even as its shrinking exchange business offers limited differentiation. A possible sale faces a key hurdle: the Winklevoss twins control 94.5% of voting power and would need to approve it. Earlier interest in Gemini’s shuttered European and U.K. operations reportedly centered on their licenses, but no deal emerged amid valuation differences.
