Gemini increases its IPO pointing to an assessment of USD $ 3.1 billion

By Hannah Pérez

The exchange of cryptocurrencies of the Winkevves has raised the price range planned for its IPO, seeking to raise around USD $ 433 million instead of the USD $ 317 initially informed. Nasdaq will invest.

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• The WinkeVess cryptocurrency exchange raises the price range planned for your IPO.
• With a price between USD $ 24 and USD $ 26 per share, it plans to raise USD $ 433 million.
• It points to an assessment of more than 3,000 million dollars, with Nasdaq among the investors of the IPO.
• Despite the interest of investors, the company is not exempt from financial challenges.

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Geminithe exchange of cryptocurrencies founded by the Cameron brothers and Tyler Winklevos, has increased the size of its initial public offer (IPO) pointing to an assessment of more than USD $ 3,000 million for the company.

In a document presented to the United States Stock Exchange and Securities Commission (SEC) on Tuesday night, Gemini He said now anticipates that the price of IPO each of its ordinary shares class A is in the range of USD $ 24 and USD $ 26, compared to USD $ 17 to USD $ 19 above, a movement that a movement that It raises the size of the USD IPO $ 317 million to USD $ 433 million.

Geminiwhich plans to debut at the Nasdaq this Friday under the “Gemi” symbol, seeks to capitalize on the growing interest in the cryptocurrency sector. The company will offer 16.7 million class A shares, with the possibility of extending to 17.1 million if the subscribers exercise its additional purchase option, which would place the valuation of the company in approximately USD $ 3,090 million.

Nasdaq It is among the initial investors, since the stock market has agreed to acquire USD 50 million in class A shares in a private placement, at a price equivalent to that of the IPO less discounts and commissions.

Nasdaq among Gemini investors

The prospect of Gemini confirmed a report from Reuters On the early Tuesday, Nasdaq’s participation in the IPO.

“Based on the initial public offering price of 25 dollars per share (which is the middle point of the estimated price range established on the cover of this prospect), Nasdaq will buy 2,116,402 shares of our ordinary shares class A“, Says the presentation.

Gemini He also confirmed that he has reached an agreement with Nasdaq to provide customers with that stock market, including companies that are quoted in the stock market and member signatures, access to cryptocurrency custody and services of services and services of Staking through Gemini.

The exchange will share rates related to NASDAQ and will also offer the guarantee management solution CALYPSO from Nasdaq to its institutional clients to manage and track their commercial guarantees. The agreement still requires final details, expected after the IPO, and Gemini It will update investors once the details are finished.

Debt, losses and other financial challenges

Despite the enthusiasm for the IPO, the documents presented reveal that Gemini Face significant financial challenges.

The exchange reported a net loss of USD $ 282.5 million with revenues of USD $ 68.6 million in six months until June 30, compared to a loss of USD $ 41.4 million and USD $ 74.3 million in revenues the previous year, according to a document before the SEC.

According to Bloomberg, Gemini reported a debt of USD $ 1.5 billion, almost half of its expected market assessmentin June, with much from the family office of the Winklevos brothers and other related parts.

This financial burden raises questions about the long -term sustainability of the company, especially in a competitive market where Gemini struggle to maintain a significant quota in front of giants such as Coinbase and Binance. Coinbasefor example, attracted about 25 times more volume than Gemini In recent days, he noticed Bloomberg citing data from Coingcko.

Operational losses in recent years of Geminiknown for your focus on safety and regulatory compliance, adds complexity to your stock excess. Despite its solid brand and its recent alignment with influential politicians, the company must overcome its low market share and demonstrate that it can effectively compete in a sector dominated by larger actors.

Boom in cryptocurrency IPO

Beyond these challenges, the last increase in the prices range of the IPO of Gemini reflects a growing optimism in the cryptocurrency sector, with several companies such as Bitgo, Grayscale, Kraken and Figure Also seeking to debut in the stock market.

For example, Figure Technology Solutionsa loan firm based on Blockchainit has also raised its IPO price range to USD $ 20 – $ 22 per share, aiming at an assessment of USD $ 4.7 billion. This boom in cryptocurrency IPO follows the recent success of companies such as Circle and Bullishwhose shares rose more than 150% in their debut in the US bags.

With his debut at the Nasdaq approaching, Gemini It seeks to consolidate its position in a cryptocurrency market in rapid evolution. However, the reported losses, the significant debt and fierce competition represent challenges that investors will evaluate.

Once it lands on the bag, it will become the third exchange of public cryptocurrencies of the USA. Coinbase and Bullish.

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Article written with the help of AI, edited by Diariobitcoin

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