KBW Analysts Offer Cautious Outlook on Newly Listed Crypto Exchange Gemini

KBW Initiates Coverage on Gemini With ‘Market Perform’ Rating, Cites Growth Potential Despite Near-Term Losses

KBW has started coverage of Gemini Space Station (GEMI), assigning a market perform rating and a $27 price target, highlighting the crypto exchange’s strong long-term prospects while noting it remains unprofitable in the near term.

Analyst Bill Papanastasiou described Gemini as a “well-rounded digital asset platform” poised for sustained growth but said its valuation discount relative to Coinbase reflects elevated execution and market risks.

Gemini, led by Cameron and Tyler Winklevoss, went public last month at $28 per share, giving the company a market capitalization of over $3 billion.

KBW noted that resolving issues with Gemini’s Earn program has cleared the way for renewed marketing efforts and competitive positioning. The firm also highlighted a partnership with Nasdaq, which could generate up to $47.7 million in near-term revenue through custody and staking services for listed firms, with additional upside from tokenization trends.

The report emphasized Gemini’s integrated app experience and strong insider ownership as advantages that support stability and continued user growth amid market volatility.

Looking ahead, KBW projects 53% annualized revenue growth over three years and anticipates profitability by late 2027, describing Gemini as a balanced yet promising play for investors betting on a prolonged crypto upcycle.

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

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