A cryptocurrency exchange has reported significant financial losses for the first half of 2025, revealing a net loss amounting to $282.5 million, a stark increase from $41.4 million in the same timeframe the previous year. This information emerged from the company’s recent initial public offering (IPO) filing.
Despite the mounting losses, the exchange is attempting to take advantage of the current trend of cryptocurrency companies going public on Wall Street. Revenue has also dipped in the first half of 2025, dropping to $68.6 million compared to $74.3 million last year, reflecting the broad challenges faced by the company in a market that was previously buoyed by favorable conditions, including substantial institutional interest in digital assets.
Experts have raised questions about the business model of the exchange, primarily focusing on its trading and custody services. Investors are curious about how this exchange can distinguish itself from a leading competitor and whether it can maintain trust and achieve sustainable growth amid increasing market competition.
In financial metrics, the exchange’s results from the previous year to 2025 show a concerning trend. The total revenue for 2024 was $142.2 million, and year-to-date in 2025, total revenue has already declined to $68.6 million. Additionally, the adjusted EBITDA also reflects rising losses, moving from $(13.2) million last year to $(113.5) million this year. However, the number of monthly users has increased slightly from 512,000 to 523,000.
In contrast, other cryptocurrency firms’ recent IPOs have experienced remarkable successes. For instance, a stablecoin issuer saw its shares surge 168% on the first trading day while another exchange experienced an 84% rise in its debut after a substantial fundraising effort.
The company has plans to list on Nasdaq under the ticker “GEMI,” making it the third publicly traded cryptocurrency exchange in the U.S., joining other notable platforms. Major financial institutions are heading the offering, though the specific terms have yet to be made public.
Established in 2014, the company operates across more than 60 countries and supports a diverse range of over 70 digital currencies. As of June, it managed around $18 billion in assets, with about 523,000 active monthly users and around 10,000 institutional clients. Most of its revenue is generated from transaction fees, which accounted for approximately 66% of total revenue in the first half of this year. Additional services include institutional custody, crypto staking, and a proprietary dollar-backed stablecoin.
The upcoming IPO is expected to fund corporate activities and aid the company in reducing its third-party debt. Regulatory challenges have posed hurdles in recent years; however, recent settlements with regulatory bodies have improved the outlook.
The timing of this IPO comes amid a period of positive regulatory developments, which have fostered increased confidence within the cryptocurrency market. New regulations have provided a structured pathway for stablecoins and other digital assets, further legitimizing the industry.
The overall market environment has shifted from speculative trading to a focus on sustainability and regulation, with institutional investors now looking for validated business models and compliant products. Despite facing immediate financial challenges, this exchange’s filing indicates its ambition to tap into the growing market capitalization, which has surged from under $10 billion upon its inception to over $4 trillion within the broader cryptocurrency ecosystem today. This trajectory reflects a robust interest and commitment from both retail and institutional players in the evolving digital asset landscape.