Cryptocurrency exchange Gemini reported a 37% year-over-year increase in Q2 revenue to $45.5 million, but posted a $107.7 million net loss as trading activity on the exchange weakened.
Exchange revenue declined 38% to $12.5 million after trading volume fell to $3.8 billion from $11.3 billion in the prior-year quarter. That drop in trading activity weighed on the company’s core exchange business.
Services revenue grew 149% to $23.5 million, driven largely by a 231% jump in credit card revenue to $16.2 million and a 50% increase in staking revenue to $4.0 million. Including interest income, services revenue plus interest totaled $26.0 million for the quarter.
Transaction losses rose to $20.1 million from $3.6 million a year earlier, mainly reflecting a $16.1 million provision for credit losses related to an identity-fraud incident affecting the credit card portfolio. Gemini said the elevated provision was concentrated in the impacted accounts and did not indicate a broader deterioration across the portfolio.
Operating expenses were $122.4 million, up 24% year-over-year, though down about 15% sequentially from Q1 as cost-cutting measures announced earlier in the year continued to take effect.
Shares in Gemini’s parent moved higher by roughly 3% in regular trading following the release, but traded nearly 5% lower in pre-market trading the next day, according to market data cited in the release.
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