Cryptocurrency exchange Gemini is undergoing a dramatic transformation as its market share and balance sheet experience significant changes. Tyler Winklevoss, one of the firm’s founders, says the sector’s prevailing negative sentiment leaves him optimistic for the future. Established in 2014 by the Winklevoss twins, Gemini has built a reputation as one of the leading U.S.-based crypto exchanges.
Bitcoin Holdings Plummet
On-chain analytics provider Arkham reports a steep decline in Bitcoin holdings within wallets associated with Winklevoss Capital over the past year. In February 2025, these wallets held approximately 23,000 BTC; by February 2026, the balance had dwindled to 11,000 BTC. This substantial drop signals a steady sell-off against the backdrop of tough market conditions.
Revenue Growth Offset by Soaring Expenses
Financial documents filed with the U.S. Securities and Exchange Commission reveal Gemini expects its net revenue for 2025 to land between $165 million and $175 million. This marks a notable rise from $141 million the year before, and monthly active user counts have climbed 17% to reach 600,000. However, operating expenses have surged even faster: while costs stood at $308 million last year, they could hit as much as $530 million in 2025 according to company forecasts.
In response to growing financial pressure, Gemini announced plans to reduce its workforce by a quarter this month. The company is also retreating from the UK, European Union, and Australia, redirecting its strategic focus to the U.S. and Singapore. A series of executive exits—in operations, finance, and legal—has led Cameron Winklevoss to assume broader oversight, with interim leaders appointed to key roles.
Market Share and Valuation Drop Sharply
Market analyses indicate Gemini’s share of global spot crypto trading volume plunged from 0.6% in mid-2025 to just 0.1% by January. The company’s valuation, which once hit $4 billion after its initial public offering, has now reportedly fallen below the $700 million mark.
According to Bloomberg, Gemini’s revamped strategy centers on a prediction market platform regulated by the U.S. Commodity Futures Trading Commission, in addition to expanding crypto custody and credit card offerings.
This comprehensive restructuring comes as harsh market realities persist for the sector. Nevertheless, some investors with high risk tolerance continue to maintain significant Bitcoin positions. Firms like Japan’s Metaplanet and U.S.-based institutional player Strategy remain committed to crypto investments, signaling sustained faith in digital assets.
“Despite industry headwinds, our long-term belief in the potential of cryptocurrencies remains strong,” Cameron Winklevoss shared, underscoring the company’s resilience through the current downturn.
Gemini’s future now hinges on its ability to adapt to evolving regulatory expectations and fierce competition, as it seeks to chart a new course focused on core markets and innovative products. Observers suggest that the success of this turnaround effort will shape the platform’s position in a rapidly changing industry.
