BitGo Posts a Bigger Profit Even Though Its Sales Were Cut Nearly in Half

BitGo ended the third quarter with net income of $44.1 million, almost double the $22.7 million it made a year ago. The boost did not come from selling more. A $71.5 million paper gain on the company’s own bitcoin did the heavy lifting, and its balance sheet held 2,399 BTC worth $200.4 million on Sept. 30. Day to day operations still lost money, with an operating loss of $19.2 million and an adjusted EBITDA loss of $4.3 million.

Why BitGo Revenue Fell to $2.85 Billion

Total revenue dropped 50.9% from last year and 34.1% from the previous quarter. Digital asset sales shrank 52% over the year as traders stayed on the sidelines, and more of the business shifted to stablecoin deals that earn thinner margins. Once direct costs are removed, revenue stood at $37.3 million, down 32.1%.

Institutional Expansion and Tokenized Stocks

CEO Mike Belshe pointed to the Go Network and tokenized equities as the quarter’s bright spots, saying US stocks can reach more people through stablecoin and digital asset rails. Platform assets grew 32% after adjusting for price changes. BitGo also finished buying NYDIG’s institutional trading unit, widened settlement links outside exchanges, including OKX, and repurchased $24.7 million of shares from a $50 million plan.

Shares closed Monday at $5.8, up 4.9%, and rose another 2.9% in extended trading.