Gemini Stock Plummets 13% After Citi 'Sell' Rating

Edgen Stock·Mar 19 2026, 01:58

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Key Takeaways

Gemini Space Station (GEMI) stock fell sharply after Citi analysts downgraded the shares to 'Sell' and more than halved the price target to $5.50. The downgrade reflects deep concerns over prolonged financial losses and weakening user engagement in a challenging crypto market, prompting the company to undertake significant restructuring.

Analyst Downgrade: Citi downgraded GEMI to 'Sell' from 'Neutral', slashing its price target from $13 to $5.50.
Market Reaction: The trading platform's stock plummeted 13% to $6.16 following the Wednesday research note.
Operational Headwinds: Gemini is laying off 25% of its staff and exiting major international markets as app downloads fell from over 100,000 per month to 41,000 in February.

Citi 'Sell' Rating Sparks 13% Stock Decline

Analysts at Citi downgraded Gemini Space Station (GEMI) to Sell from Neutral on Wednesday, cutting the firm's price target by more than half to $5.50 from $13. The report triggered a sharp sell-off, with Gemini's stock falling 13% to $6.16 in afternoon trading. The decline compounds a difficult year for the company, which saw its shares fall 28% year-to-date prior to the downgrade. The trading platform went public in September at $28 per share, near the peak of the crypto market, but has struggled as Bitcoin prices have since fallen approximately 40%.

Projected Losses Worsen to 2029 as User Growth Stalls

Citi's downgrade stems from concerns that Gemini cannot achieve profitability in the near future. The bank now projects Gemini will post an adjusted loss of $263 million in 2025 and continue to lose money through 2029, revising a previous forecast that saw the company reaching profitability by 2028. This pessimistic outlook is supported by declining user metrics. Monthly unique visitors have trended downward since September, while app downloads collapsed to just 41,000 in February, a steep drop from the more than 100,000 downloads recorded in each of the prior nine months.

We have increasing concerns the company will be challenged to scale profitability within a reasonable time frame for equity investors and remain competitive.

— Peter Christiansen, Citi Analyst

Gemini Sheds 25% of Staff and Exits Global Markets

In response to mounting financial pressure, Gemini is undertaking a significant corporate restructuring. Last month, the company announced it would lay off approximately 25% of its staff and cease operations in the United Kingdom, Europe, and Australia. The move coincides with the departure of its chief operating, financial, and legal executives. Founders Cameron and Tyler Winklevoss stated the company was spread too thin, with operational complexity driving up costs in regions that lacked sufficient demand to justify the expense.