Key facts
- BitGo reported $44.1 million in third-quarter net income, nearly double a year earlier.
- A $71.5 million unrealized gain on digital assets offset a $19.2 million operating loss.
- Revenue fell 51% to $2.85 billion; revenue after direct costs fell 32% to $37.3 million.
- Revenue came in 32% below the $4.2 billion consensus shared by Zacks Investment Research.
- BitGo held $143 million in cash and 2,399 Bitcoin worth $200 million as of September 30.
- BitGo laid off about 15% of its staff in June to refocus on trading, stablecoins and AI.
BitGo Holdings reported $44.1 million in third-quarter net income, nearly double a year earlier, as a $71.5 million unrealized gain on its digital assets offset a $19.2 million operating loss, according to its quarterly filing. A year earlier, the crypto custodian reported operating income of $3.9 million.
Revenue fell 51% from a year earlier to $2.85 billion as digital asset sales slowed, BitGo said on November 9. The company generally records the full proceeds of those sales as revenue and accounts for the costs separately. Revenue after direct costs fell 32% to $37.3 million.
BitGo missed Wall Street estimates for both revenue and earnings in the third quarter, with revenue coming in 32% below the $4.2 billion consensus shared by Zacks Investment Research. Its shares rose 4.9% on November 9 to close at $5.10, reversing some of the 60% decline seen since early in the year, according to Yahoo Finance.
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 September 30. In June, BitGo laid off about 15% of its staff to refocus on areas including trading, stablecoins and artificial intelligence.