Crypto Exchange Gemini Sets Sights On $2.3 Billion Valuation As IPO Approaches

Gemini, the US-based cryptocurrency exchange founded by twins Cameron and Tyler Winklevoss, is targeting a valuation of up to $2.22 billion as it prepares for its initial public offering (IPO). 

Gemini Set To Join Ranks Of Public Crypto Exchanges

The exchange announced on Tuesday plans to offer 16.67 million shares priced between $17 and $19 each under the ticker name “GEMI”, with a potential total raise of approximately $317 million at the upper end of the pricing range.

This move comes at a time when crypto-related public offering activity in the US is witnessing a notable resurgence in the US. Companies like Circle (CRCL) and Bullish (BLSH) saw their shares rise significantly at the time of their respective debut.

Gemini’s listing would be a significant milestone, as it would be the third publicly traded digital asset exchange. This also follows the successful debuts of Bullish last August and Coinbase, the largest crypto platform in the United States, in 2021.

According to Bo Pei, an analyst at US Tiger Securities, the successful public offerings of firms like Circle and Bullish, combined with a favorable overall market and rising cryptocurrency prices, create a conducive environment for crypto-related companies to consider going public.

Notably, the cryptocurrency sector has been steadily integrating into mainstream finance, aided by the regulatory approvals for spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) last year, and Coinbase’s inclusion in the S&P 500.

Blockchain Lenders Join IPO Trend

In a similar vein, Figure Technologies, a blockchain lending firm, is also eyeing a substantial valuation of up to $4.13 billion in its own initial public offering. 

The company plans to sell 26.3 million shares, with anticipated prices between $18 and $20, aiming to raise up to $526.3 million. As with Gemini, Figure’s move reflects a broader trend of crypto firms capitalizing on the current market enthusiasm for new listings.

The current US administration’s supportive stance towards the cryptocurrency sector with the passage of key crypto bills is expected to keep the IPO pipeline active, particularly for well-structured and compliance-focused companies. 

IPOX CEO Josef Schuster noted that this supportive regulatory environment is likely to encourage more firms to go public. He stated:

Investors in this space tend to be patient because they see the long-term potential—especially with regulatory hurdles starting to clear and adoption continuing to grow

Goldman Sachs and several traditional financial institutions on Wall Street are set to serve as the lead underwriters for the initial public offering of Gemini and Figure Technologies’ initial public offerings.

Featured image from DALL-E, chart from TradingView.com