Cryptocurrency exchange Gemini has revealed plans for a leadership restructuring that will see three senior executives depart as the company narrows its geographic focus and implements cost-cutting measures, according to an official filing released Tuesday.
Summary
- Gemini operates in more than 60 countries, but demand in some areas has proved insufficient to support continued growth.
- The company plans to enter into severance agreements with three executives that will allow them to stay on temporarily to help with the transition.
- The board appointed Chief Accounting Officer Danijela Stojanovic as interim CFO.
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 states in filing Form 8-K. Gemini plans to work out severance agreements with each manager that will allow them to stay on temporarily to help with the transition, where they will receive base salary and benefits without additional bonuses or compensation.
Beard also resigned from Gemini’s board of directors on the same day. The filing indicated that his departure was not related to disagreements about operations, policies, or procedures.
Gemini announced a round of layoffs earlier this month.
The company will not fill the position of chief executive officer. Founder Cameron Winklevoss will assume many of Beard’s responsibilities, including revenue-related duties, according to the filing. The board appointed Chief Accounting Officer Danijela Stojanovic as interim CFO, and Kate Freedman, currently general counsel and corporate secretary, will serve as interim general counsel.
ETF analyst James Seyffart noted the changes as “a big shakeup” in a post on social media X after the filing was published.
The leadership changes are in line with a broader operational restructuring announced earlier this month. Gemini Space Station Inc. will stop operating in the United Kingdom, the European Union, and Australia, the company said. Gemini also announced a workforce reduction of approximately 25% to reduce costs and focus on key priorities.
The company’s management indicated that the expansion in many countries caused operational difficulties and high costs. While Gemini operates in more than 60 countries, demand in certain areas has proved insufficient to support continued growth, executives said. Future operations will focus more on the US, which management has identified as a strong market for the company.
Last year’s unaudited financial results showed a mixed performance. Monthly active users rose about 17% year over year to nearly 600,000, according to company data. Total revenue is expected to be between $165 million and $175 million, compared to $141 million in 2024.
Operating expenses, however, significantly outpaced revenue growth. The company estimates that operating expenses could reach $530 million, with an adjusted EBITDA loss of approximately $260 million. Total annual losses could reach $600 million, according to statistics.
Market participants reacted negatively to the disclosed losses, according to reports.
