Shares of Gemini (GEMI) fell more than 10% at the open on 12 Mar as weak market sentiment collided with a prominent insider sale filing. The digital asset platform is facing severe structural headwinds ahead of its upcoming earnings report.
In a regulatory document submitted late on 11 Mar to the Securities and Exchange Commission, Tessera Venture Partners Fund II LP disclosed plans to offload 35,713 shares of common stock valued at approximately $319,000. The entity is closely linked to Gemini director and board member Dr. Sachin Jaitly.
While the proposed sale represents a relatively small portion of the total shares outstanding, the timing of the filing appears to have spooked institutional investors. The disclosure arrives just days before the company is scheduled to release its fourth-quarter and full-year 2025 financial results on 19 Mar, which analysts expect will reveal significantly widening losses.
Gemini operates a prominent crypto trading platform and provides digital asset services to retail and institutional clients, offering custody, brokerage and staking solutions. Today's decline extends a brutal slide that began shortly after the company executed its initial public offering in September 2025. The stock is now down almost 80% from its initial $37 listing price. At 17:00UTC, GEMI was trading for around $7.90, a slight recovery from the $7.63 low seen earlier in the New York trading session.
Ballooning personnel costs and restricted sales
The recent filing indicates the shares in question are restricted securities originally acquired privately from the company on 1 Nov 2021. Under established regulations in the Securities Act, insiders and early investors holding restricted stock must publicly notify the SEC before executing sales on open markets.
Recent preliminary disclosures suggest the financial condition of the company is rapidly deteriorating despite top-line operational growth. Gemini reported a 17% increase in active users and initial revenue growth, but management warned that escalating structural costs are weighing heavily on the balance sheet.
The company attributed the massive surge in expenses largely to unchecked personnel costs and generous stock-based compensation packages. Gemini currently expects a net loss of up to $602mn for 2025, while adjusted EBITDA is projected to show a loss of roughly $267mn. Operating expenses have nearly doubled over the past year. Public equity markets are demonstrating zero tolerance for this level of cash burn, strictly punishing digital asset firms that prioritize expansion over sustainable profitability.
Leadership exodus and strategic retreat
Adding to the overwhelmingly negative macroeconomic outlook, the company has suffered a severe talent drain since its public debut. Several senior executives overseeing finance, legal and operations have quietly departed the firm.
In response to the mounting financial pressure, Gemini has also announced plans to wind down the vast majority of its international operations across the United Kingdom, the European Union and Australia. This strategic retreat indicates a desperate consolidation effort to preserve domestic market share as institutional patience entirely evaporates.
