Mizuho Significantly Lowers Gemini's Target Price Due to Weak Trading Impacting Core Business

Odaily News Mizuho Securities has significantly lowered its price target for cryptocurrency exchange Gemini from $26 to $12, a reduction of over 50%. This is primarily attributed to weak trading performance, which offset the positive impact from growth in its credit card business.

Analysts Dan Dolev and Andrew Jenkins pointed out that the weakness in cryptocurrency asset prices and the decline in platform trading volume are expected to limit Gemini's short-term revenue growth. Although the company's card business continues to expand, it is not yet sufficient to compensate for the decline in the core trading business.

The report also mentioned that Gemini's revenue structure is undergoing changes, with service-related income expected to account for nearly half of total revenue. Simultaneously, the compression of valuation multiples across the exchange sector has also contributed to the downward revision of the target price.

Market data shows that Gemini's stock price previously fell to a historical low of $5.50 before experiencing a slight recovery.