Citi Downgrades Gemini Stock Rating Amid Profitability Concerns

Citi has downgraded Gemini's stock rating from Neutral to Sell, citing concerns about the exchange's profitability. In a note published on Wednesday morning, the bank predicted that it will take years for Gemini to become profitable.

The downgrade comes as Gemini's stock price dropped over 16% in a single day, outpacing losses in other major crypto stocks. This move has sparked concern among investors about the exchange's financial prospects.

Gemini has been taking steps to cut costs and improve its financial situation. The company announced plans to exit several European jurisdictions and slash its headcount by 25% earlier this year.