BitGo Q3 Earnings: Revenue Falls 51% to $2.9B

BitGo’s Q3 earnings showed revenue falling 51% year over year to $2.85 billion in the quarter ended Sept. 30, yet net income nearly doubled to $44.1 million. The company announced the results on Monday, Nov. 9. A $71.5 million unrealized gain on digital assets lifted the bottom line despite an operating loss.

BitGo’s Q3 revenue fell as digital-asset sales slowed

Digital-asset sales slowed in the quarter. BitGo generally books the full proceeds of those sales as revenue and records the related costs separately, so the top line took the hit. Revenue after direct costs fell 32% to $37.3 million. The Block linked the decline to a softer crypto trading environment and a higher mix of lower-margin stablecoin transactions.

That accounting makes headline revenue a noisy gauge. A swing in trading volume can move the top line sharply without changing much of what BitGo keeps after direct costs. In Q3 the after-cost figure fell too, though by less than headline revenue, so weaker sales came with pressure on transaction economics.

Zacks Investment Research had a consensus estimate of $4.2 billion, and the $2.85 billion result landed 32% below it. BitGo also missed Wall Street earnings estimates, according to Cointelegraph.