Nasdaq Invests $50 Million Ahead of Gemini IPO

Nasdaq is investing $50 million in the initial public offering of Gemini Space Station, a crypto company backed by Cameron and Tyler Winklevoss. (Michael Nagle/Bloomberg)

Nasdaq wants to be a big player in crypto—and it’s investing big money to make that happen.

The exchange operator is plowing $50 million into shares of Gemini Space Station, a crypto company set to go public later this week on Nasdaq, according to a filing by Gemini with the Securities and Exchange Commission. The private placement of Gemini stock with Nasdaq will close immediately after the initial public offering.

Also in the filing on Tuesday, Gemini said it was joining with Nasdaq to allow the exchange operator to custody and stake crypto assets. Custody refers to how cryptos are secured in digital wallets; staking is a way to store and verify cryptos on blockchain networks.

And Gemini will be a partner with Nasdaq’s Calypso Solution business, reselling Nasdaq’s collateral management services to Gemini’s institutional clients.

“We continue to expand our capabilities to serve our institutional clients and the broader investor universe as the regulatory landscape around crypto assets evolves,” a Nasdaq spokesperson told Barron’s in an email.

The SEC is taking a friendlier approach to the crypto industry under new chair Paul Atkins, who was nominated by crypto investor and supporter President Donald Trump.

The Nasdaq spokesperson added that the exchange operator’s dealings with Gemini are consistent with others done through its Nasdaq Ventures unit.

Gemini, backed by entrepreneurial twins Cameron and Tyler Winklevoss, expects to price its shares after the stock market closes on Thursday; trading then would begin on Friday, capping a busy week for new listings. Besides Gemini, fintech Klarna Group and four other companies are going public this week.

Demand for IPOs has been strong, particularly for fintechs.

Crypto company Bullish and derivatives exchange Miami International Holdings went public about a month ago. In a just a couple of days, it’s Klarna and Figure, a blockchain-based lending platform.

On Tuesday, Figure raised the size and price range of its IPO—to 31.5 million shares at a range of $20 to $22 from 26.3 million shares at a range of $18 to $20. The company may raise up to nearly $700 million through the offering, which could value Figure at more than $5 billion.

Gemini will list its shares under the ticker symbol of GEMI. The company plans to raise more than $300 million from the sale of 16.7 million shares at a price range of $17 to $19. That would value Gemini at approximately $2.3 billion at the high end of the range.

Write to Paul R. La Monica at paul.lamonica@barrons.com