Gemini Space Station Inc. announced February 5 it will exit the UK, European Union, and Australia while cutting approximately 200 employees, representing 25% of its global workforce. Accounts transition to withdrawal-only mode March 5, with full closure by April 6.
The timing is notable. Gemini completed its Nasdaq debut just months ago, making this immediate retrenchment a sharp reversal for investors. The exchange posted a $159.5 million loss for Q3 2025 and expects $11 million in pre-tax restructuring charges.
The Winklevoss twins framed this as "Gemini 2.0," a strategic shift toward AI integration and prediction markets. Their stated reasoning: "These foreign markets have proven hard to win in for various reasons and we find ourselves stretched thin with a level of organizational and operational complexity that drives our cost structure up and slows us down."
The real question is whether this represents strategic focus or financial necessity. The severity suggests the latter. A quarterly loss approaching $160 million and immediate post-IPO retreat indicate underlying business model stress beyond simple geographic inefficiency.
Regulatory friction played a role. UK banks rejected close to £1 billion in crypto transactions in January 2026, with 80% of exchange customers reporting blocked transfers. Higher compliance costs in Europe made international operations economically unviable.
Gemini will maintain US and Singapore operations, positioning itself as domestically focused. The company partnered with eToro to facilitate customer transitions, though users face a 7-day approval cycle for new withdrawal addresses. EU customers need Travel Rule attestations for self-hosted wallets before the March 5 deadline.
What this means in practice: execution risk on customer offboarding remains high, particularly for users with perpetual trading positions that must close by March 5. The company claims restructuring will "meaningfully accelerate our path to profitability," acknowledging profitability remains elusive despite dramatic cost-cutting.
The pattern is clear. This is Gemini's third major pivot since 2023, following its SEC settlement over the Earn program in January 2026. The exchange's ability to execute this withdrawal without customer losses will determine whether the market views this as prudent repositioning or distressed retreat.