Key Facts

  • BitGo reported third-quarter net income of $44.1 million, compared with a $19.0 million net loss in the second quarter and $22.7 million in net income a year earlier.

  • The company said the improvement was driven primarily by a $71.5 million unrealized gain on its digital asset treasury, while adjusted EBITDA was a $4.3 million loss.

  • Total revenue fell 50.9% from a year earlier to $2.85 billion, which BitGo attributed mainly to lower digital asset sales amid a soft crypto trading environment.

BitGo reported third-quarter net income of $44.1 million, compared with a $19.0 million net loss in the second quarter and $22.7 million in net income a year earlier.

The company said the improvement was driven primarily by a $71.5 million unrealized gain on its digital asset treasury, while adjusted EBITDA was a $4.3 million loss.

Total revenue fell 50.9% from a year earlier to $2.85 billion, which BitGo attributed mainly to lower digital asset sales amid a soft crypto trading environment.

Digital asset infrastructure company BitGo returned to profit in the third quarter on a gain on its digital asset treasury, reporting net income of $44.1 million after a $19.0 million loss in the previous quarter.

Why Revenue Fell

BitGo said revenue declined mainly because of lower digital asset sales activity in a continued soft crypto trading environment. Digital asset sales revenue fell 52% from a year earlier to $2.72 billion, with a contribution margin of 15 basis points, down from 20 basis points a year earlier.

Revenue after direct costs was $37.3 million, down 32.1% from a year earlier. Operating expenses, excluding direct costs, fell 5.5% from the second quarter to $56.6 million, which the company tied to cost cuts begun in that quarter.

Staking revenue was $68.2 million, up 5.4% from the second quarter but down 24.1% from a year earlier. Stablecoin-as-a-service revenue was $37.4 million.

Clients, Treasury and NYDIG

BitGo's client count rose 33.1% from a year earlier to 6,640. Assets on platform were $59.9 billion, down from $65.2 billion in the second quarter, which the company said was mainly due to lower median digital asset prices.