BitGo Q3 profit doubles to $44M on crypto treasury gains

BitGo Q3 profit — Digital asset custodian BitGo Holdings reported a net income of $44.1 million for the third quarter, nearly doubling its profit from a year ago, as a $71.5 million unrealized gain on its crypto holdings offset a significant operating loss.

The company’s revenue, however, fell 51% year-over-year to $2.85 billion, which it attributed to a slowdown in digital asset sales. Revenue after direct costs was $37.3 million, down 32%. Both figures missed Wall Street analyst expectations, with total revenue coming in 32% below consensus estimates.

BitGo’s operating loss for the quarter was $19.2 million, a sharp reversal from the $3.9 million in operating income it reported for the same period last year. The company’s shares rose 4.9% on Monday to close at $5.10, partially recovering from a steep year-to-date decline.

As of September 30, BitGo’s corporate treasury held 2,399 Bitcoin, with a fair value of $200 million, alongside $143 million in cash and cash equivalents. The company conducted layoffs earlier in the year, cutting about 15% of its staff to refocus on core business areas.