Gemini Space Station: Re-Rating Trigger

Node Analytica Research353 FollowersFollow5ShareSavePlay(8min)CommentsSummaryGemini Space Station, Inc. receives a tactical buy rating, supported by its expansion into regulated US prediction markets via a CFTC license.GEMI demonstrates strong product diversification, with service revenue now 39% of total and credit card revenue up 75% quarterly.Despite a >50% post-IPO decline, GEMI's doubling of revenue and rising recurring service income signal improving fundamentals.I recommend a high-risk, 1% portfolio allocation, as institutional trading drives volume but yields lower margins; proof of recurring revenue is key.

Getty Images Investment Thesis In today's article, we will discuss Gemini Space Station, Inc. (GEMI), a company that acts as a link between traditional finance and the crypto sector. It currently offers its customers a cryptocurrency exchange and custodyThis article was written byNode Analytica Research353 FollowersFollowNode Analytica is a macro - onchain research firm whose founders have developed systematic investment strategies in the digital assets market in order to generate competitive and uncorrelated investment returns for institutional investors.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow does GEMI's new CFTC license alter its growth prospects?The CFTC license enables GEMI to enter the US prediction market, opening a significant new revenue stream, but material impact depends on execution and recurring revenue realization.What is driving recent revenue growth and how sustainable is it for GEMI?GEMI's revenue doubled YoY, with service revenue rising to $19.9M and credit card revenue up 75%, indicating early but promising diversification beyond volatile trading fees.What are the key risks and recommended exposure for GEMI at this stage?High institutional trading volume drives low-margin growth, so I recommend a tactical 1% allocation until recurring revenues and profitability from new ventures are demonstrated.Recommended For You