BitGo profit nearly doubles as revenue falls 51%

BitGo Holdings reported third-quarter net income of $44.1 million, up 94.4% from a year earlier, even as revenue fell 50.9% to $2.85 billion. The company attributed the revenue decline mainly to lower digital-asset sales activity. Its results for the quarter ended September 30 were released November 9.

A $71.5 million unrealized gain on digital assets was the primary support for net income, according to the company’s quarterly filing. BitGo also reported a $19.2 million operating loss and adjusted EBITDA of negative $4.3 million. The figures show that the higher net income came alongside losses on operating measures, rather than stronger overall revenue.

Digital-asset sales generated about $2.72 billion, most of BitGo’s reported revenue, but produced a contribution margin of $4.2 million after related costs. Revenue after direct costs was $37.3 million, down 32.1% from a year earlier. BitGo said total revenue also declined 34.1% from the previous quarter, as sales activity weakened.

Some service lines grew while sales revenue contracted. Stablecoin-as-a-Service revenue rose 52.5% year over year to $37.4 million. Staking revenue totaled $68.2 million. BitGo’s client count reached...