BitGo Q3 profit nearly doubles on crypto gains as revenue falls 51%
US-listed digital asset infrastructure company BitGo Holdings reported $44.1 million in third-quarter net income, nearly double a year earlier, as a rise in the value of its crypto holdings offset a $19.2 million operating loss.
The crypto custodian recorded a $71.5 million unrealized gain on digital assets in the quarter ended Sept. 30, according to its quarterly filing. A year earlier, it 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 Monday. 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 US financial research firm Zacks Investment Research.
Its shares rose 4.9% on Monday 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 (BTC) in corporate treasury holdings, with a fair value of $200 million as of Sept. 30.
BitGo stock price, year-to-date chart. Source: Yahoo Finance
In June, BitGo laid off about 15% of its staff to refocus on areas including trading, stablecoins and artificial intelligence.
Related: BitGo buys NYDIG trading arm to deepen institutional crypto push
