GEMI

GEMI is a recently-IPO'd (Sept 2025 at $28) crypto exchange now at $4.23, ~85% below its offer price, and the collapse is grounded in the numbers, not just sentiment. Revenue grew a respectable 26.3% to $180M, but net loss more than tripled to -$583M from -$159M, and management's own Adjusted EBITDA cratered to -$258M from just -$13.2M a year earlier. That divergence — revenue up, profitability down an order of magnitude — is the opposite of what you want to see in a scaling platform and signals the business does not yet have a path to operating leverage.

The balance sheet superficially looks like a value trap that's actually cheap: market cap of $159M sits below stockholders' equity of $541M (~0.3x book) and P/S is only 0.9. But the quality of that cushion is thin. Operating cash flow was -$218M against just $252M of cash, i.e. roughly one year of runway at the current burn — an existential clock that dominates any book-value argument. Retained earnings are a -$2.04B accumulated deficit, and the 663% jump in share count reflects the dilutive IPO that funded, rather than fixed, the burn.