By Reuters

(Reuters) - Gemini Space Station (GEMI.O) shares surged more than 20% in premarket trading on Friday after the cryptocurrency exchange reported a smaller-than-expected quarterly loss and its ​founders injected $100 million into the business.

Shares of the New York-based company ‌were priced at $28 in their IPO, but have since lost ground, closing at $5.26 on Thursday.

The investment, announced late Thursday, was made by Winklevoss Capital Fund at $14 per share, with payment ​in bitcoin. The fund, owned by Cameron and Tyler Winklevoss, is their ​family office and main vehicle for venture capital and crypto investments.

Net ⁠loss per share was 93 cents in the three months ended March ​31, better than the $1.03 analysts had expected, according to LSEG estimates. Quarterly revenue surged ​42% to $50.3 million from a year earlier, driven by growth in services and OTC platform revenue.

Analysts, however, remain cautious.

"Were it not for the founders' $100 million strategic investment, we think Gemini ​would likely be down on the print as key metrics like user and ​revenue reacceleration fell well short of pre-IPO expectations," Evercore analyst Adam Frisch said.

CEO Tyler Winklevoss ‌said ⁠the market has "significantly undervalued Gemini."

MORE TROUBLE, LESS STAFF

The results arrive against a turbulent backdrop. Gemini and founders Cameron and Tyler Winklevoss face a shareholder lawsuit alleging investors were misled about the firm's business prospects, with a strategy shift, job cuts ​and executive departures ​blamed for driving ⁠down the stock.

In February, Gemini said it would cut about 25% of its workforce, wind down most of its international ​operations, and parted ways with its chief operating, financial and ​legal officers. Danijela ⁠Stojanovic has served as interim finance chief since then.

Frisch said Gemini has yet to provide revenue guidance, leaving investors with limited visibility into its push into predictions ⁠and derivatives.

The ​Winklevoss twins first gained public prominence after suing ​Mark Zuckerberg, alleging he stole their idea for Facebook. They settled in 2008 for cash and ​stock.

Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid

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