Gemini Shares Rise 20% After $100 Million Investment

The company's shares rose sharply in premarket trading after it secured a $100 million investment. The transaction involved buying Class A shares at $14 apiece, funded by bitcoin. The stock had closed at $5.26 on Thursday and was up 20% in early trading Friday, though it remains down 47% year to date.

Short interest stands at 21.5% of the float, or about 8.3 million shares, with 5.3 days needed to cover those positions. This leaves the stock vulnerable to a short squeeze if upward momentum continues. The company went public in September 2025 and currently trades about 83% below its $28 listing price.

The company's first-quarter loss narrowed to $109 million from $149 million a year earlier. Revenue increased 42% to $50 million, supported by growth in services including credit cards. The company has achieved several product and regulatory milestones that it says position it to expand from a crypto business into a broader markets company.

A company statement said the investment will support the next phase of growth. "We believe the market has significantly undervalued Gemini, and that this investment will allow us to set up the company for its next phase of growth," the CEO said. The statement added that the funding will help evolve the business and support long-term success.

Analysts offered mixed assessments of the quarterly results and the investment. One analyst group noted that without the strategic investment the stock would likely have fallen, as user growth and revenue reacceleration fell short of pre-IPO expectations.

Another described the results as a solid start to the year and called the capital injection and management commentary positive. A third firm said the first-quarter performance was better than feared and that the capital could ease balance sheet concerns.

The company has not provided further details on how the new funds will be allocated.