Cryptocurrency exchange Gemini reported on Thursday (13) a net loss of US$ 107.7 million in the 2nd quarter, while revenue rose 37% year over year, to US$ 45.5 million.
Exchange revenue fell 38%, to US$ 12.5 million, and trading volume declined from US$ 11.3 billion to US$ 3.8 billion on the same comparison basis.
Services revenue advanced 149%, to US$ 23.5 million, driven by a 231% increase in credit card revenue, to US$ 16.2 million, and by 50% growth in staking revenue, to US$ 4 million. Including interest revenue, services and interest totaled US$ 26 million.
Card fraud
Transaction losses rose to US$ 20.1 million, from US$ 3.6 million a year earlier. The increase stems from a US$ 16.1 million provision for credit losses related to an identity fraud event in the credit card portfolio. Gemini said the provision was concentrated in the affected accounts and does not reflect a broader deterioration of the portfolio.
Operating expenses grew 24% year over year, to US$ 122.4 million, but fell 15% compared with the 1st quarter, as part of the cost-cutting program announced by the company earlier this year.
Gemini's shares rose 3% on Thursday, but fell almost 5% in Friday's pre-market, after the results were published, according to Yahoo Finance data.
