Gemini Stock Plummets 16% on Citi Sell Rating
Shares of crypto exchange Gemini (GEMI) plunged more than 16% on Wednesday after Citigroup analysts downgraded the stock from Neutral to Sell. The bank also slashed its price target on the company from $13 to $5.50, suggesting it will be years before the firm achieves profitability. The stock fell to $5.95 per share, compounding losses for investors who participated in its September initial public offering.
Profitability Concerns Undercut $3.3B IPO Valuation
The downgrade highlights severe doubts about Gemini's near-term business prospects. The exchange went public on the Nasdaq at $28 per share, securing a valuation of roughly $3.3 billion. Wednesday's trading price represents a collapse of nearly 80% from that initial valuation. The report comes just a day before Gemini is scheduled to release its fourth-quarter and full-year 2025 financial results. In an effort to control costs, the company announced in February it was exiting operations in the U.K., EU, and Australia and had cut its headcount by 25%, aiming to use AI to improve efficiency and accelerate its path to profitability.
Citi Lowers Bitcoin Target to $112,000 on Market Headwinds
Citi's bearish stance on Gemini aligns with its broader, more cautious outlook on the digital asset market. Earlier in the week, the bank lowered its 12-month forecast for Bitcoin from $143,000 to $112,000 and for Ethereum from $4,304 to $3,175. Citi strategist Alex Saunders noted that the opportunity for significant U.S. crypto-focused legislation is diminishing this year. The bank's analysis points to worse-than-expected inflation data and geopolitical instability as additional headwinds weighing on the sector.
Edgen Crypto·Mar 18 2026, 22:38