Gemini secures up to $50 million from Nasdaq ahead of IPO

• Gemini revealed that Nasdaq is set to invest up to $50 million to support its IPO.
• Gemini's institutional clients will reportedly be able to use Nasdaq's Calypso platform to manage their collateral.
• The development follows Gemini's plan to go public on Nasdaq under the ticker GEMI.

Gemini disclosed in an S-1 filing with the United States (US) Securities and Exchange Commission (SEC) on Tuesday that Nasdaq will purchase up to $50 million worth of its shares ahead of the exchange's initial public offering (IPO).

Nasdaq to invest up to $50 million in Gemini IPO

Crypto exchange Gemini has brought Nasdaq on board as a strategic investor ahead of its planned IPO, according to an updated S-1 filing with the SEC on Tuesday. 

Nasdaq agreed to purchase $50 million worth of Gemini's Class A common stock through a private placement. The share purchase will be in line with the expected IPO price of $18, with Nasdaq acquiring 2,939,447 shares of Gemini's Class A common stock.

Gemini's institutional clients will reportedly be able to use Nasdaq's Calypso platform for collateral management and trade monitoring. Likewise, Nasdaq's customers would gain access to Gemini's custody and staking services, according to a Reuters report.

The crypto exchange plans to sell 16,666,667 shares of its Class A common stock, with underwriters granted a 30-day option to purchase an additional 2,396,348 and 103,652 shares. Goldman Sachs, Citigroup, Morgan Stanley, Cantor Fitzgerald and Evercore Group are among the underwriters for the offering, according to the filing.

The shares are expected to be priced between $17 and $19 each, positioning the offering to raise more than $300 million.

The development follows Gemini's plan to list on Nasdaq on Friday under the ticker GEMI. Gemini's public launch will add to a growing list of crypto companies entering public markets this year, including high-profile debuts from stablecoin issuer Circle (CRCL) and cryptocurrency exchange Bullish (BLSH).