Digital asset infrastructure provider BitGo Holdings reported $44.1 million in third-quarter net income, nearly doubling compared to the previous year, as gains in the value of its cryptocurrency holdings compensated for an operating loss.
For the quarter ending September 30, the crypto custodian posted a $71.5 million unrealized gain on its digital assets, helping offset a $19.2 million operating loss. Meanwhile, total revenue declined 51% year-over-year to $2.85 billion due to a slowdown in digital asset sales. Revenue after direct costs also dropped 32% to $37.3 million. BitGo's overall revenue and earnings missed preliminary expectations from Wall Street analysts, with revenue falling 32% below the consensus estimate of $4.2 billion.
As of the end of September, the company held $143 million in cash and cash equivalents alongside 2,399 Bitcoin in its corporate treasury, carrying a fair value of $200 million. Shares of BitGo rose 4.9% on Monday to close at $5.10, rebounding slightly from a 60% decline earlier in the year. Earlier in June, the company reduced its workforce by roughly 15% to shift its strategic focus toward artificial intelligence, stablecoins, and trading.
For market and crypto observers, the results highlight how corporate crypto treasury holdings can significantly influence net profitability during periods of fluctuating asset values, even when traditional sales metrics and operating income face downward pressure.