Cryptocurrency exchange Gemini has disclosed plans for a management restructuring that will see three senior executives leave as the company narrows its geographic scope and implements cost cuts, according to a regulatory filing released Tuesday.
Summary
- Gemini operates in more than 60 countries, but demand in some regions has proven insufficient to support continued growth.
- The company plans to sign separation agreements with three executives that could allow them to stay on temporarily to ease transitions.
- The board of directors appointed accounting director Danijela Stojanovic as interim financial director.
Chief Operating Officer Marshall Beard, Chief Financial Officer Dan Chen and Chief Legal Officer Tyler Meade will leave their positions effective Feb. 17, the company said in a Form 8-K. Gemini plans to sign separation agreements with each executive that could allow them to stay on temporarily to ease transitions, during which they would receive base salary and benefits without additional bonuses or incentive compensation.
Beard also resigned from the Gemini board on the same date. The filing said his departure was not related to disagreements over operations, policies or practices.
Gemini announced a series of layoffs earlier this month.
The company will not fill the COO role. Co-founder Cameron Winklevoss will assume many of Beard’s responsibilities, including revenue-related duties, according to the filing. The Board of Directors has appointed Chief Accounting Officer Danijela Stojanovic as Interim Chief Financial Officer, while Kate Freedman, currently Associate General Counsel and Corporate Secretary, will serve as Acting General Counsel.
ETF analyst James Seyffart called the changes a “big shake-up” in a post on social media platform X following the filing’s release.
The leadership changes accompany a broader operational restructuring announced earlier this month. Gemini Space Station Inc. will cease operations in the United Kingdom, the European Union and Australia, the company announced. Gemini also announced workforce reductions of approximately 25% to reduce costs and focus on core priorities.
Company management indicated that expanding into multiple countries created operational complexity and high expenses. Although Gemini operates in more than 60 countries, demand in some regions has proven insufficient to support continued growth, executives said. Future operations will focus primarily on the United States, which management has identified as the company’s most important market.
Unaudited financial results from the previous year reflected mixed performance. Users transacting monthly increased about 17% year over year to around 600,000, according to company data. Net revenues are projected at $165 million to $175 million, up from $141 million in 2024.
However, operating costs have far outpaced revenue growth. The company estimates its operating expenses could reach $530 million, with adjusted EBITDA losses of approximately $260 million. Total net losses for the year could approach $600 million, according to projections.
Market participants reacted negatively to the revealed losses, according to reports.
