Heavily shorted Gemini Space Station soared in premarket trading after Tyler and Cameron Winklevoss injected $100 million into the money-losing crypto exchange, buying Class A shares at $14 apiece in a bitcoin-funded transaction.

GEMI shares are up 20% in premarket trading after closing at $5.26 on Thursday, though the stock remains down 47% year to date.

Short interest is high at 21.5% of the float, equivalent to roughly 8.3 million shares, with 5.3 days to cover, leaving GEMI vulnerable to a squeeze on any sustained upside momentum.

"We believe the market has significantly undervalued Gemini, and that this investment will allow us to set up the company for its next phase of growth," CEO Tyler Winklevoss said in a statement.

Winklevoss noted, "Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company. This investment will help fuel that ambition and set Gemini up for long-term success."

GEMI's first-quarter loss narrowed to $109 million from $149 million one year ago, while revenue jumped 42% to $50 million, helped by growth in services such as credit cards. The exchange went public in September 2025 and remains about 83% from its $28 listing price.

Analyst commentary (courtesy of Bloomberg):

Evercore ISI analyst Adam Frisch (in line, PT $5)

• If was not for the strategic investment, the stock "would likely be down on the print as key metrics like user and revenue reacceleration fell well short of pre-IPO expectations"

• "The strategic investment is the headline and should support the stock, but we do not view the underlying print as encouraging as fundamentals are not yet reaccelerating"

Mizuho analyst Dan Dolev

Truist Securities analyst Matthew Coad (hold, $5)

• While Gemini's 1Q were better than feared, "the capital injection may alleviate balance sheet concerns."

Analyst ratings: 

The crypto exchange went public in September 2025 and remains 83% below its $28 listing price.