✓ Verified by 2+ outlets
Gemini reportedly unloads its shuttered UK and EU units to stablecoin firm KAST for under $10 million
Summary
Gemini, the Winklevoss-founded exchange, has sold its U.K. and European operations to Singapore stablecoin payments company KAST, CoinDesk reported, citing a person familiar with the matter; Bitcoin Magazine followed CoinDesk's report.
The price was below $10 million, according to that person. Gemini declined to comment, and a KAST spokesperson would not discuss the deal but said the company is 'actively in the market for M&A.'
Gemini announced in February that it would wind down its U.K., EU and Australian operations and cut about 25% of its global workforce, keeping its U.S. and Singapore businesses, both outlets reported.
Neither company has publicly confirmed the sale, Bitcoin Magazine noted, and the report lands hours before Gemini releases third-quarter results after Thursday's U.S. market close.
Key facts
- CoinDesk: the deal was referenced about a month ago in a KAST job listing that tasked a prospective European general manager with transitioning Gemini's U.K. and EU staff.
- CoinDesk previously reported that potential buyers were eyeing the shuttered units for their regulatory permissions rather than a takeover of the whole Nasdaq-listed company.
- KAST, founded by former Circle executive Raagulan Pathy, raised $80 million in a March Series A co-led by QED Investors and Left Lane Capital, both outlets reported.
- Bitcoin Magazine: Gemini estimated about $11 million in pre-tax restructuring charges for the overseas exit, and any transfer of a licensed U.K. or EU firm typically needs a change-of-control review by local regulators.
- CoinDesk: crypto M&A totaled $2.2 billion across 67 deals in the third quarter, down 83% by value from the prior quarter, according to Architect Partners.