Crypto platform Gemini’s stock is down 80% from its IPO. That’s reviving takeover speculation

While its exchange business is shrinking, its core exchange technology may also offer limited differentiation from rivals, a venture capital investor told CoinDesk.

However, Gemini (through its subsidiaries) still holds important regulatory licenses and approvals that would be costly and time-consuming for competitors to replicate organically, the investor said. Potential buyers would likely weigh the cost of buying these entities versus the time and legal fees associated with obtaining these approvals, the person added.

That would fit a broader pattern in crypto M&A, where buyers are increasingly paying for regulatory infrastructure, distribution and market access rather than simply acquiring trading volume. For example, digital-asset services firm Keyrock bought BlockFills’ trading assets in July to add regulatory licenses, derivatives expertise and institutional clients, while tokenization firm Ondo has been exploring a deal worth up to $500 million. LMAX and B2C2 have also explored strategic transactions as crypto companies look to expand through acquisitions rather than build every license and product internally.

CoinDesk reported in April that prospective buyers were considering buying Gemini’s shuttered European and U.K. operations primarily for their regulatory licenses, rather than pursuing a full takeover. A deal has yet to materialize amid differing views on valuation, the investor noted, who spoke on condition of anonymity as the matter is private.