Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss (often referred to as Gemini Space Station in some contexts, ticker: GEMI), has undergone a significant restructuring in February 2026.
This includes laying off approximately 25% of its global workforce up to around 200 employees and exiting operations in the UK, EU including other European jurisdictions, and Australia. The moves come amid a sharp downturn in the crypto market, with Bitcoin experiencing notable declines, leading to lower trading volumes, tighter liquidity, and rising regulatory pressures.
Gemini, which went public via IPO in September 2025, has seen its stock plummet more than 80% from post-IPO highs, with its market value dropping sharply. The restructuring aims to reduce operating expenses, streamline toward a leaner model partly enabled by increased use of AI in engineering and other roles, and refocus primarily on the US and Singapore.
The company is shifting emphasis toward custody services and its newly launched prediction markets platform, as revenue growth has lagged behind expenses.
Expected pre-tax restructuring costs are around $11 million, with most changes to be completed in the first half of 2026.
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In mid-February, Gemini also parted ways with three C-suite executives: COO Marshall Beard, CFO Dan Chen, and CLO Tyler Meade (effective immediately), with interim replacements appointed internally. Cameron Winklevoss is absorbing some COO responsibilities. Additional quiet US staff cuts have occurred beyond the initial announcement.
This isn’t related to Google’s Gemini AI model. The news pertains specifically to the crypto platform. The crypto industry continues facing challenges post-2025 market cycle, with firms adjusting through cost-cutting and strategic pivots. Gemini’s changes reflect broader pressures in the sector.
The 25% staff layoffs (affecting up to ~200 employees globally) and related restructuring at Gemini (the crypto exchange founded by the Winklevoss twins, NASDAQ: GEMI) in early February 2026 carry several significant implications, both for the company and the broader crypto sector. This comes amid a sharp crypto market downturn, with Bitcoin down over 40% from its late-2025 highs, reduced trading volumes, and persistent profitability challenges.
The moves are explicitly designed to slash operating expenses, align costs with lower revenue, and accelerate breakeven. The company cited revenue growth lagging behind expenses, with prior quarters showing substantial losses, ~$159.5M in one reported period, and estimates of up to ~$600M net loss for 2025.
Restructuring costs are estimated at ~$11M pre-tax, mostly in Q1 2026, but the long-term goal is meaningful cost reduction through workforce cuts, AI integration in operations, and exiting high-complexity/low-return international markets (UK, EU, Australia). This refocuses Gemini on core strengths in the US and Singapore.
Emphasis shifts toward custody services (a more stable, fee-based revenue stream less tied to volatile trading) and the newly launched prediction markets platform. This bets on emerging niches amid declining traditional exchange activity, but success is uncertain in a bearish environment.
The abrupt departures of three C-suite executives (COO Marshall Beard, CFO Dan Chen, CLO Tyler Meade) —shortly after the initial announcement—signal deeper internal turmoil. Cameron Winklevoss is absorbing some COO duties without a replacement, suggesting recentralization of power but raising concerns about governance and execution risk.
GEMI shares have plummeted >80% from post-IPO highs peaking near $45-46 in late 2025, with market cap dropping from ~$4B to under $700M (recent trading around $5.8–$6.6). Additional quiet US staff cuts and executive exits triggered further declines. Analysts from Truist Securities highlight solvency worries and question the original IPO prospectus’s optimism about international growth.
International users face account wind-downs potentially driving them to competitors. This shrinks Gemini’s global footprint but simplifies operations. The crypto “winter” is hitting infrastructure players hard. Gemini’s aggressive post-IPO expansion bet on continued bull conditions through 2027 backfired with the rapid price crash, highlighting overexpansion risks in bull markets.
It echoes patterns seen in prior cycles where exchanges over-hire and over-extend during highs. As a US-focused, compliance-heavy exchange, Gemini faces higher costs from regulations, while offshore/DEX competitors capture volume with lower overhead. The retreat from regulated but complex markets (EU/UK) underscores difficulties in global scaling under tightening rules.
This reinforces that even well-known, publicly traded players aren’t immune. It could pressure peers to accelerate cost controls, pivot to non-trading revenue (custody, derivatives, prediction markets), or face similar scrutiny. Investor confidence in crypto IPOs/post-IPO stability may wane further.
If Gemini stabilizes via its US pivot and new products, it could emerge leaner. However, ongoing market weakness risks further cuts or distress. This reflects a classic crypto cycle correction: hype-driven growth unraveling under reality. Gemini is in survival mode, prioritizing US dominance and profitability over global ambition.
The crypto sector continues its Darwinian phase, where adaptability and cash runway determines who endures. The situation remains fluid with no major positive reversals reported.