BitGo reports sharper Q3 revenue decline as crypto trading slows

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BitGo Q3 revenue decline

Highlights

BitGo reports Q3 revenue of $2.85 billion, down 50.9% year over year and 34.1% quarter over quarter as crypto trading slows.
Net income more than doubles to $44.1 million from $22.7 million due to a $71.5 million unrealized gain on the digital asset treasury.
BitGo’s NYSE-listed shares rise 4.94% to $5.10 and add 2.9% after hours following institutional expansion initiatives and stronger balance sheet metrics.

Quarter results and operating pressures

As reported by The Block, citing BitGo’s press release, the company posts Q3 revenue of $2.85 billion, down 50.9% from a year earlier and 34.1% from the prior quarter. BitGo says the decline is driven mainly by lower digital asset sales, which fall 52% year over year and 35.2% sequentially amid a continued soft crypto trading environment and a higher mix of lower-margin stablecoin transactions.

After direct costs, revenue totals $37.3 million, down 32.1% from a year earlier. The company also records an operating loss of $19.2 million and an adjusted EBITDA loss of $4.3 million.

Net income rises to $44.1 million from $22.7 million a year earlier, primarily because of a $71.5 million unrealized gain on BitGo’s digital asset treasury. As of Sept. 30, the company holds 2,399 BTC on its balance sheet, valued at $200.4 million.

Institutional expansion and market response

Chief Executive Mike Belshe says BitGo continues to build its position as an institutional digital asset infrastructure platform during the quarter, highlighting the Go Network and tokenized equity initiatives. He says the company sees opportunities to broaden access to U.S. equities through digital asset and stablecoin networks while expanding on-chain settlement, collateral and financing uses for traditional portfolios.

BitGo says normalized assets on its platform rise 32% year over year, reflecting continued institutional adoption when adjusted for price changes. During the quarter, the company completes the acquisition of NYDIG’s institutional trading business, expands off-exchange settlement connectivity including with OKX, and repurchases $24.7 million of common stock under its $50 million authorization.

Investors respond positively to the update despite the revenue contraction. BitGo’s NYSE-listed shares rise 4.94% to close at $5.10 on Monday and add another 2.9% in extended trading.

Earlier, we reported that Wipro’s July-September revenue rose 9.1% year on year to 247.53 billion rupees, helped by European client spending and AI services.

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