KBW Gives Reserved Reaction to Gemini’s Market Debut

KBW Initiates Coverage on Gemini, Assigns Market Perform Rating Amid Near-Term Losses

Investment bank KBW has begun coverage of Gemini Space Station (GEMI), giving the crypto exchange a market perform rating with a $27 price target. While the firm sees strong long-term growth potential, it noted that Gemini is expected to remain unprofitable in the near term.

Analyst Bill Papanastasiou described Gemini as a “well-rounded digital asset platform” poised for growth but said a valuation discount versus Coinbase is appropriate given elevated execution and market risks.

Gemini, founded by Cameron and Tyler Winklevoss, debuted on the market last month at $28 per share, giving the company a valuation exceeding $3 billion.

KBW highlighted the resolution of issues surrounding Gemini’s Earn program, clearing the way for renewed marketing and competitive efforts. The bank also noted a new partnership with Nasdaq, which could generate up to $47.7 million in near-term revenue from custody and staking services for listed firms, with further upside tied to tokenization initiatives.

The report pointed to Gemini’s unified app experience and high insider ownership as strengths that support user retention and platform stability in volatile markets.

Looking forward, KBW expects 53% annualized revenue growth over three years and anticipates profitability by late 2027, calling Gemini a balanced but promising option for investors positioning for a multi-year crypto upcycle.

GEMI shares rose 2% in premarket trading to $25.80.