Billionaire twins Cameron and Tyler Winklevoss’ crypto exchange Gemini Space Station reported widening losses Thursday, just a month after announcing mass layoffs, business closures and a major business pivot.

The day before the fourth quarter and full year earnings release, its shareholders filed a class action lawsuit against the company alleging Gemini misled investors about its strategy and growth prospects in IPO marketing materials. Gemini’s stock has plummeted 82% since its public debut in September.

Last month, the crypto exchange announced it was shifting its focus to prediction markets as it cut nearly 30% of its workforce and exited its Europe and Australia businesses. Its chief operating, financial and legal officers left the company shortly thereafter. Gemini reported last year’s revenue was up 26% to $179 million but net losses widened from $158 million in 2024 to $585 million. In the fourth quarter, revenue was up 40% over the quarter to $60 million though net losses widened fivefold from the previous quarter to $147 million. Gemini’s stock popped 11% in after-hours trading after earnings released Thursday but hit an all-time low on Friday at $5.51.

“Management credibility has been challenged with some of the expectations they laid out pre IPO versus post IPO,” said Pete Christiansen, director at Citi Research. “Now there’s no sense of when this company is going to really turn profitable, and that’s a legitimate concern for investors.”

Last September, Gemini seized the hot IPO market by announcing its own public listing. Companies including stablecoin issuer Circle and crypto exchange Bullish had made successful public debuts earlier that summer as crypto prices surged.

Gemini’s IPO filing revealed falling revenues and deepening losses in the first half of 2025, with $68.6 million in revenue and $282.5 million in net losses in the six months ending June 30, up from $41.4 million net losses on a revenue of $74.3........

© Forbes