Gemini SEC filing reveals $150M credit deal with Ripple ahead of IPO

The Gemini exchange disclosed through its August 15 S-1 filing with the U.S. SEC that it had agreed to open a $75M credit line with Ripple. The deal stipulated that the $75M is expandable by increments of over $5M in each funding round, up to a maximum of $150M.

Gemini also claimed that the deal allows further borrowing in RLUSD once the initial commitment is exceeded. However, the Ripple Credit Agreement stated that Gemini has to formally request Ripple’s consent before this happens. The loan must be collateralized, bearing an interest of 6.5%- 8.5% per annum.

Gemini is preparing for its IPO

Gemini is gearing up for an IPO and wants to be listed on Nasdaq under the ticker GEMI. 

Notably, the filing showed that the exchange has not yet drawn on the credit line as of the August 2025 filing date. Gemini said the secured funding cushioned against market volatility and could shore up liquidity with enough flexibility as it debuts in the public market.

However, the exchange’s team clarified that the agreement is more of a safety net, not a direct equity purchase by Ripple. Neither is it financing for the upcoming IPO.

The Cryptopolitan reported on August 16 that Gemini is riding the crypto wave to boost its IPO. However, the company reported a $282.5 million net loss despite revenue of $67.9 million in H1 2025, ending June 30. Transaction fees accounted for over 65% of its H1 2025 revenue. The firm also posted a $41.4 million loss after posting a revenue of $73.5 million over the same period last year.

The company allegedly has over $18 billion in AUM (assets under management).

Gemini seeks up to $400M for IPO

Gemini is reportedly seeking to raise up to $400 million for the IPO. Some of the funds would be used to boost the company’s growth, while the rest would finance debts. However, the U.S. SEC filing revealed that the exchange sought to raise $100 million for the IPO of its Class A common stock. The company also disclosed roughly $589.2 million in cash as of June 30, 2025. 

Gemini listed Goldman Sachs, Keefe, Needham & Company, Morgan Stanley, Cohen & Company Capital Markets, AmeriVet Securities, Citigroup, Mizuho, Rosenblatt, Truist Securities, Evercore ISI, Bruyette & Woods, and Cantor as its IPO underwriters. The company’s management also believes that potential exposure to legal action will not negatively affect the financial condition or operations.

However, Gemini reportedly claimed that crypto valuation changes and crypto loans materially affected its financial results. 

The company also recently disclosed that it would not pay dividends soon and would retain all earnings to fund its growth. Its capital spending history showed that the capex had continued to increase despite generating negative cash flow for operations. 

Gemini said it would focus on increasing the number of users transacting through its platform monthly as part of its growth strategy. It would also focus on increasing trading volume, further global expansion, asset base growth, and M&A deals.       

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