Cryptoupdated 14m ago2 min read
BitGo Q3 Net Income Nearly Doubles to $44.1 Million as Revenue Falls 51%
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Revenue declined about 51% year-over-year to roughly $2.85–2.9 billion. Net income rose to $44.1 million, aided by a $71.5 million unrealized crypto gain.
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Profit rises, revenue falls
BitGo reported $44.1 million in third-quarter net income, nearly double a year earlier, as a $71.5 million unrealized gain on its digital asset treasury offset a $19.2 million operating loss.
BitGo said third-quarter revenue fell 51% from a year earlier to $2.85 billion, with digital asset sales slowing.
BitGo recorded revenue after direct costs of $37.3 million, down 32% year over year, while it missed Wall Street estimates for both revenue and earnings in the third quarter.
BitGo also reported holding $143 million of cash and cash equivalents and 2,399 Bitcoin (BTC) in corporate treasury holdings, with a fair value of $200 million as of Sept. 30.
Treasury gains drive the swing
BitGo said it attributed the revenue decline to weaker cryptocurrency trading and a higher proportion of lower-margin stablecoin transactions, even as net income rose 94.4% to $44.1 million. BitGo reported $2.72 billion in digital asset sales, but it left only $4.2 million contribution margin after transaction costs, reflecting a 15 basis points margin.
CEO Mike Belshe told analysts, "We expanded our global footprint and completed the acquisition of NYDIG’s institutional trading business," tying the quarter to institutional infrastructure expansion. BitGo also repurchased $24.7 million of common stock during the quarter under its $50 million authorization, leaving approximately $25.3 million unused.
What comes next for BTGO
BitGo completed its acquisition of NYDIG’s institutional trading business during the quarter, adding derivatives, structured products, financing and trading capabilities. BitGo said it expanded off-exchange settlement connectivity, including with OKX, and introduced BitGo Prime’s Global Liquidity Layer.
BitGo reported 6,640 clients, up 33.1% from 4,988 a year earlier, while it said assets on the platform fell to $59.9 billion from $104 billion a year earlier. BitGo’s earnings release also showed diluted earnings of $0.36 per share for the quarter, compared with $0.15 a year earlier and a loss of $0.16 per share in the preceding quarter.