KBW Initiates Gemini Coverage With Market Perform Rating: $27 Target For Crypto Exchange Stock

Investment firm KBW has commenced coverage of Gemini Space Station (GEMI) with a market perform rating and $27 price target, characterizing the cryptocurrency exchange as a comprehensive digital asset platform positioned for sustained expansion. Analyst Bill Papanastasiou noted Gemini currently operates at a loss, justifying its discounted valuation relative to competitor Coinbase due to heightened execution and market risks. KBW emphasized Gemini's diverse ecosystem—encompassing trading, custody, credit services, staking, stablecoins, and tokenized equities—holds significant cross-selling potential as cryptocurrency adoption grows. The report highlighted Gemini's credit card division as a primary growth catalyst, with over 100,000 users and strong conversion rates driven by crypto rewards programs. Following its recent public debut at $28 per share (valuing the company above $3 billion), KBW identified the resolution of Gemini's Earn program challenges as enabling renewed marketing initiatives. A strategic Nasdaq collaboration could generate up to $47.7 million in near-term revenue through custody and staking services for listed companies, with additional upside from tokenization trends. KBW cited Gemini's integrated application and substantial insider ownership under founders Cameron and Tyler Winklevoss as stabilizing factors supporting user acquisition. The firm forecasts 53% annualized revenue growth over three years—exceeding industry peers—with profitability anticipated by late 2027, positioning Gemini as a balanced yet promising investment for those betting on extended crypto market growth. GEMI shares advanced 2% to $25.80 in premarket trading.