Gemini boots IPO to $433M, aims for $3 billion valuation

Crypto exchange Gemini has upped its initial public offering ahead of its debut on Friday and is now aiming for a valuation exceeding $3 billion, showing growing investor interest in crypto-related companies.

The updated prospectus, filed with the Securities and Exchange Commission on Tuesday, said that the Cameron and Tyler Winklevoss-founded firm now intends to sell its stock in the range of $24 and $26, up from its initial $17 to $19 offer.

The exchange will offer around 16.67 million shares, the same as before, and aim for a raise of $433 million, up from its goal of raising $317 million in its initial filing on Sept. 2.

Gemini’s upsized IPO comes amid an onslaught of crypto-related companies going public this year that Wall Street has rushed to back as the market has gained with the Trump administration’s friendlier tone to the sector.

Nasdaq backs Gemini IPO

The company confirmed that its debut is being backed by Nasdaq, which will purchase 2.11 million shares in a $50 million private placement.

In its filing, Gemini reported its total revenue stood at $68.61 million for the six months ended June 30, a decrease of $5.71 million from the same period last year. Meanwhile, its net loss increased to $282.47 million from $41.37 million during the same period.

Cameron Winklevoss and Tyler Winklevoss at TechCrunch Disrupt NY 2015. Source: TechCrunch

Gemini saw an increase in trading volume, which increased to $24.8 billion for the six months ended June 30, an increase of nearly 50% from the previous year.

Increasing interest in crypto-related companies

Investors are seemingly taking a strong interest in crypto-related companies this year.

Stablecoin issuer Circle debuted on the New York Stock Exchange (NYSE) with a gain of 167%. The stock briefly touched the $298 mark; however, it ended Tuesday’s trading session at $118.10, according to Google Finance.

Related:  Circle’s NYSE debut marks start of crypto IPO season: Are Kraken, Gemini and Bullish next? 

Similarly, shares of cryptocurrency exchange operator and media company Bullish saw strong gains of 218% on its listing day.

Earlier in May, Coinbase became the first crypto firm to enter the Standard and Poor’s 500 index, an index that tracks the top 500 American companies.

Meanwhile, crypto exchange Kraken is reportedly looking to raise $500 million at a $15 billion valuation.
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