BitGo Q3 Profit Nearly Doubles As Revenue Falls 51%

BitGo Holdings reported third-quarter net income of $44.1 million, nearly double the year-earlier figure, as a $71.5 million unrealized gain on its crypto holdings offset a $19.2 million operating loss, according to Cointelegraph.

The US-listed digital asset infrastructure company said revenue fell 51% from a year earlier to $2.85 billion as digital asset sales slowed. Revenue after direct costs fell 32% to $37.3 million.

Earnings Miss Estimates

BitGo missed Wall Street estimates for both revenue and earnings in the third quarter. Revenue came in 32% below the $4.2 billion consensus shared by US financial research firm Zacks Investment Research. A year earlier, the company reported operating income of $3.9 million.

Balance Sheet and Holdings

The company reported holding $143 million of cash and cash equivalents and 2,399 Bitcoin in corporate treasury holdings, with a fair value of $200 million as of Sept. 30.

Its shares rose 4.9% on Monday to close at $5.10, reversing some of the 60% decline seen since early in the year, according to Yahoo Finance.

In June, BitGo laid off about 15% of its staff to refocus on areas including trading, stablecoins and artificial intelligence.

Key facts

• Q3 net income: $44.1 million, nearly double a year earlier
• Unrealized gain on digital assets: $71.5 million
• Revenue: $2.85 billion, down 51% year over year
• Revenue after direct costs: $37.3 million, down 32%
• Cash and equivalents: $143 million
• Bitcoin holdings: 2,399 BTC, fair value $200 million