"Gemini Space Station shares surged more than 20% in premarket on Friday after the Winklevoss Capital Fund bought $100m of stock at $14, well above Thursday's $5.26 close, and the exchange reported a smaller Q1 loss than expected. The Winklevoss twins have written a $100m cheque to their own company. Winklevoss Capital Fund, the family vehicle of Gemini Space Station co-founders Tyler and Cameron Winklevoss, closed a private placement on Thursday for 7,142,857 Class A shares at $14 each."
"Revenue came in at $50.3m, up 42% year on year and above the $47.9m FactSet consensus, with a loss of 93 cents a share versus an expected $1.03. Both numbers are still well inside loss territory for a public exchange, but they were the right shape to land alongside a founders' show of confidence. The market took it the way it was intended. Gemini's stock rose more than 20% in premarket trading on Friday after the news, helped along by a Q1 print that beat on revenue and loss."
"The financing structure is the interesting bit. The Winklevoss vehicle paid the $100m entirely in bitcoin, transferring about 1,258 BTC onto Gemini's balance sheet at the agreed valuation. That gives Gemini a freshly bitcoin-denominated treasury and, in cash terms, recapitalises a balance sheet that had been thinning through losses. It also signals what the founders think the floor on the stock is, in a way that an open-market purchase at the prevailing $5.26 print would not have."
"Tyler Winklevoss, in remarks accompanying the placement, said the market had 'significantly undervalued Gemini' and that the company had 'achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a market"
Gemini Space Station shares rose more than 20% in premarket after Winklevoss Capital Fund bought $100m of stock at $14, far above the prior $5.26 close. The fund, tied to Tyler and Cameron Winklevoss, completed a private placement for 7,142,857 Class A shares at $14 each. The company also reported a smaller Q1 loss than expected, with revenue of $50.3m up 42% year on year and a per-share loss of 93 cents versus an expected $1.03. The $100m payment was made entirely in bitcoin, transferring about 1,258 BTC to Gemini at the agreed valuation, strengthening its bitcoin-denominated treasury and recapitalizing its balance sheet.
Read at TNW | Finance
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