• Net income was $44.1 million, or $0.36 a diluted share, driven by a $71.5 million unrealized gain on BitGo's digital asset treasury; the company had an operating loss of $19.2 million [1].
  • Total revenue fell 50.9% to $2.85 billion and revenue after direct costs fell 32.1% to $37.3 million as digital asset sales slowed [1].
  • Clients rose 33% to 6,640, and BitGo repurchased $24.7 million of stock under a $50 million authorization [1].

BitGo reported third-quarter net income of $44.1 million, or $0.36 a diluted share, up from $22.7 million a year earlier and a $19.0 million loss in the second quarter [1]. The company said the profit was driven primarily by a $71.5 million unrealized gain on its digital asset treasury; before that and other non-operating items, it had an operating loss of $19.2 million [1].

Total revenue fell 50.9% from a year earlier to $2.85 billion, and 34.1% from the second quarter, which BitGo attributed to lower digital asset sales in "a continued soft crypto trading environment" [1]. Most of that revenue passes straight through: after direct costs such as the cost of digital assets sold, staking fees and stablecoin sponsor fees, revenue was $37.3 million, down 32.1% year over year and 12.1% sequentially [1].

Where the revenue came from

Digital asset sales brought in $2.72 billion of revenue but only $4.2 million after costs, a margin of 15 basis points, down from 17 basis points in the second quarter and 20 a year earlier, as clients shifted toward lower-margin stablecoin transactions [1]. Staking revenue rose 5.4% sequentially to $68.2 million but fell 24.1% from a year earlier as BitGo's take rate dropped to 5.9% from 9.7% [1]. Stablecoin-as-a-service revenue rose 52.5% year over year to $37.4 million, and subscriptions and services fell 24.5% to $25.6 million [1].

Operating expenses excluding direct costs fell 5.5% sequentially to $56.6 million after cost cuts begun in the second quarter [1]. Adjusted EBITDA was a loss of $4.3 million, against a $4.2 million loss in the second quarter and a $13.5 million profit a year earlier [1].

Clients up, platform assets down

Clients rose 33.1% from a year earlier to 6,640 [1]. Reported assets on platform fell to $59.9 billion from $65.2 billion in the second quarter, which BitGo attributed mainly to lower median crypto prices used in the metric; on its normalized basis, which reprices earlier periods at current prices, assets on platform rose 32% year over year and assets staked rose 41% [1]. At September 30 prices, assets on platform were $83.0 billion [1].

BitGo completed its acquisition of NYDIG's institutional trading business in the quarter, ended September with $143.2 million of cash and 2,399 bitcoin worth $200.4 million, and repurchased $24.7 million of stock [1]. Chief Executive Mike Belshe said the company is "positioning BitGo to provide the financial infrastructure for bringing traditional assets on-chain, beginning with tokenized equities" [1]. The release gave no financial outlook [1]. BitGo went public this year, and MLQ's SEC-derived history for the company is incomplete; year-ago figures in the table come from the release [1][2].

Companies mentioned

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