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BitGo's Q3 revenue falls 51% while net income nearly doubles on crypto treasury gains
⚪NeutralWeaker revenue from slow trading is offset by treasury gains, and the results are company-specific rather than tied to a token.News sentiment, not financial advice. It reflects the likely impact of this news, not a price prediction.
Summary
Crypto custodian BitGo reported third-quarter revenue down 51% from a year earlier, while net income rose on gains in the value of its crypto holdings, The Block and Cointelegraph reported.
Cointelegraph said revenue fell to $2.85 billion as digital asset sales slowed, and that net income reached $44.1 million, nearly double a year earlier, as a $71.5 million unrealized gain on digital assets offset a $19.2 million operating loss.
The Block attributed the revenue drop to a continued soft crypto trading environment and a higher mix of lower-margin stablecoin transactions.
Cointelegraph said BitGo missed Wall Street estimates for revenue and earnings, though its shares rose 4.9% Monday to close at $5.10.
Key facts
- Cointelegraph: BitGo generally books the full proceeds of digital asset sales as revenue; revenue after direct costs fell 32% to $37.3 million.
- Cointelegraph: revenue came in 32% below a $4.2 billion consensus shared by Zacks Investment Research.
- Cointelegraph: BitGo held $143 million in cash and equivalents and 2,399 BTC in its corporate treasury, worth $200 million, as of Sept. 30.
- Cointelegraph: a year earlier BitGo reported operating income of $3.9 million; the stock is still down about 60% since early in the year, per Yahoo Finance data cited by the outlet.
- Cointelegraph: BitGo laid off about 15% of staff in June to refocus on trading, stablecoins and AI.