The Winklevoss brothers' Gemini fell below the $28 issue price on Wednesday, with a market value evaporating to $2.9 billion
Gemini Space Station's stock price fell below the IPO issuance price of $28 just a few days after its listing in the United States, closing at $24.53 on Wednesday, a single-day decline of 12.8%, bringing its market value down to $2.9 billion. The company went public on September 12, initially seeing a significant rise on its first day of trading, but has since faced continued pressure. Meanwhile, Coinbase also dropped by 2.2%. The Federal Reserve announced a 25 basis point rate cut, with the market expecting more cuts to follow. Gemini was founded by the Winklevoss brothers in 2014 and manages assets exceeding $21 billion
According to Zhitong Finance APP, Gemini Space Station (GEMI.US) continued its downward trend on Wednesday, falling below the IPO issue price of $28 just days after its listing in the U.S., with the current stock price closing at $24.53, a single-day decline of 12.8%, and a current market value of $2.9 billion. The company officially entered the U.S. stock market on September 12, experiencing a significant rise on its first day of trading but has since faced ongoing pressure. As the largest publicly listed cryptocurrency competitor in the U.S., Coinbase (COIN.US) also fell by 2.2% on Wednesday, while Bitcoin prices dropped nearly 1%.
On the same day, the S&P 500 index and the tech-heavy Nasdaq 100 index also declined. The Federal Reserve announced a 25 basis point rate cut, marking the first rate cut of the year, with the market generally expecting more rate cuts to follow. Federal Reserve Chairman Jerome Powell pointed out that there are more signs of weakness in the labor market, which became a key basis for the decision to cut rates at this time.
According to documents submitted by Gemini to the U.S. Securities and Exchange Commission, the company was founded in 2014 by Cameron and Tyler Winklevoss, and the platform manages assets exceeding $21 billion. Its business encompasses cryptocurrency exchanges, dollar-backed stablecoins, crypto asset staking services, digital asset custody, and credit cards that offer crypto rewards, among other services. In 2021, the company achieved a valuation of $7.1 billion through financing. Nasdaq committed to investing $50 million through private placement during the IPO.
It is worth noting that SEC documents revealed that on Monday, Gemini's Chief Legal Officer Tyler Mead and Chief Operating Officer Marshall Beard reported multiple instances of insider stock trading
