BitGo Q3 profit nearly doubles on crypto gains as revenue falls 51%
BitGo’s $71 million unrealized gain on its crypto holdings helped nearly double its net income, but revenue and earnings came in below preliminary analyst expectations.
Digital asset infrastructure firm BitGo reported a nearly doubled net income of $44.1 million in Q3 2023, driven by a $71.5 million increase in the value of its cryptocurrency holdings. However, the company's revenue fell 51% year-over-year to $2.85 billion, falling short of analysts' expectations. BitGo's crypto custodian business recorded a $71.5 million unrealized gain in the quarter, up from an operating income of $3.9 million a year earlier.
Revenue after direct costs declined 32% to $37.3 million, missing Wall Street estimates by 32%. Despite the revenue decline, BitGo's shares rose 4.9% to $5.10, reversing a 60% decline since early in the year. As of September 30, the company held $143 million in cash and 2,399 Bitcoin with a fair value of $200 million. In June, BitGo laid off about 15% of its workforce to refocus on trading, stablecoins, and artificial intelligence, as well as purchasing NYDIG's trading arm to expand its institutional crypto offerings.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
