The American crypto exchange Gemini, founded by Cameron and Tyler Winklevoss, has lost three top executives in a short time. The company simultaneously announces major layoffs and withdraws from several international markets.
The unrest follows shortly after Gemini’s IPO, which coincided with a sharp decline in the Bitcoin price.
Three top executives are leaving immediately
Chief operating officer Marshall Beard, chief financial officer Dan Chen and legal director Tyler Meade are leaving effective immediately, according to an official statement. Beard also resigns from his board position. Gemini emphasizes that his departure is not the result of an internal conflict.
Cameron Winklevoss will take over some of Beard’s duties for the time being. Danijela Stojanovic will become temporary financial director. Kate Freedman has been promoted to interim legal director.
It is striking that the company has not appointed a permanent successor for Beard. This points to a major restructuring within Gemini.
Gemini’s IPO turns out to be disastrous
Gemini went public in mid-September. A day after the introduction, the share peaked at $45.89. The price has now collapsed to $6.50, a drop of fourteen percent in one day. It is the biggest one-day decline since November.
The timing of the IPO seems unfortunate. At the beginning of October, the Bitcoin price was still at $ 126,251, but has since lost more than forty percent in value. While stock and gold markets rebounded, the crypto sector fell into a deep trough.
A similar scenario previously played out at Coinbase, which went public in 2021 around a peak in the Bitcoin price. That share also suffered heavy blows afterwards.
Dismissals and withdrawal from Europe
In addition to the departure of the top executives, Gemini is carrying out a broader reorganization. The company wants to lay off up to 25 percent of its staff. Activities in the United Kingdom, the European Union and Australia are also being phased out.
According to Gemini, the measure is necessary to ‘strategically reposition’ the company and ‘make it operationally more efficient’. The combination of price pressure, declining trading volumes and disappointing income is playing tricks on the company.
Loss of hundreds of millions expected
At the same time as the news about the layoffs and the departure of the board, Gemini presented preliminary annual figures for 2025. It expects a pre-tax loss of between 257 and 267 million dollars. Net sales would amount to $165 to $175 million.
However, the costs continue to rise. Gemini expects expenditures of 520 to 530 million dollars, an increase of more than seventy percent compared to a year earlier. According to the company, the increase is mainly due to investments in technology, administration and personnel costs.
Although Gemini does not explicitly point to the decline in the crypto market as the cause of the cost savings, it is certain that the sharp decline in the Bitcoin price has been putting pressure on companies in the sector for months. The coming quarterly figures should make it clear how deep the blow really is.
Source: https://newsbit.nl/paniek-bij-cryptobeurs-gemini-3-topbestuurders-vertrekken-en-beurskoers-keldert/
