Gemini plans Nasdaq IPO, aiming to raise $317M. A key moment for crypto’s integration into traditional financial markets.
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has announced its plan to go public through an initial public offering (IPO) on the Nasdaq Global Select Market. The company plans to sell approximately 16.67 million Class A shares at a price range of $17 to $19 per share, with a maximum funding objective of up to $317 million. Shares will trade under the ticker symbol: GEMI.
Goldman, Citi Lead Gemini IPO Amid Crypto Boom
Goldman Sachs and Citigroup are at the head of the underwriting syndicate, joined by Morgan Stanley and Cantor. Other bookrunners are Evercore ISI and Mizuho. The involvement of these prominent financial institutions signifies widespread investor interest and confidence in Gemini’s future.
Gemini IPO arrives as crypto companies increasingly go public. Circle, the issuer of the USDC stablecoin, also filed for an IPO recently, which is valued at over $1 billion. OKX and Kraken have also been considering similar actions, indicating that regulatory frameworks and institutional acceptance are evolving in favor of crypto entities operating in conventional capital markets.
To facilitate more widespread participation by the public, Gemini is setting aside 10% of its IPO shares for retail investors through platforms such as Robinhood and SoFi. This approach is similar to what other technology companies have been doing to encourage long-term investor engagement and community support.
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With the Winklevoss twins having been at the forefront of driving cryptocurrency adoption, they are likely to continue to have a significant impact on Gemini’s post-IPO trajectory. Their leadership can bring continuity as the company transitions to a publicly traded entity, but it can also increase scrutiny and compliance expectations for operational functions.
Gemini’s financial statements show that despite the strong market interest, Gemini is facing challenges. The company said it widened losses in the first half of the year. Gemini is not the only financial institution to have encountered such difficulties; Circle and others have also reported problems. These losses serve as a reminder that the crypto industry remains volatile and unpredictable, despite its maturity.
Gemini IPO Seen as Key Test for Crypto Market Appetite
However, investor confidence is still high. Given the successful launch of other crypto-related companies, it seems that the market is open to companies with a compelling narrative, a solid strategy, and a clear growth trajectory. Gemini’s standing as a compliant and regulated exchange could provide an advantage in an environment where regulatory oversight is of utmost importance.
Gemini’s IPO is scheduled for early September, and Gemini shares are set to trade starting on September 12. If successful, the company will join only a handful of publicly traded cryptocurrency exchanges in the United States, joining Coinbase and Bullish. The offering may act as an important reference point for other issuances in the sector in the future.
In conclusion, Gemini’s decision to go public is a momentous step for the crypto industry. It’s part of a larger trend of convergence between digital assets and traditional finance. Despite the challenges in the financial sector, the IPO is seen as an opportunity for the company to raise capital, expand its operations, and strengthen its presence in a changing global market. The result of this listing may have an impact on the path other crypto companies take toward a similar action in the near future.
