Crypto custody firm BitGo’s revenue fell 51% year over year in the third quarter, while its net income rose to $44.1 million as the value of its digital assets increased.
According to financial results reported by The Block, BitGo’s revenue fell to $2.85 billion. The company attributed the 52% year-over-year drop in digital asset sales to weak trading volume and a higher share of lower-margin stablecoin transactions. After direct costs were deducted, revenue was $37.3 million, down 32% from a year earlier.
How did BitGo’s net income rise while it posted an operating loss?
BitGo’s net income rose from $22.7 million to $44.1 million. The main reason for the increase was a $71.5 million unrealized valuation gain on the company’s own digital assets. BitGo reported an operating loss of $19.2 million over the same period. As of September 30, the company held 2,399 BTC worth $200.4 million on its balance sheet.
What happened to assets on the platform and BitGo shares?
Excluding the impact of price changes, assets on the BitGo platform increased 32% year over year. During the quarter, the company also acquired NYDIG’s institutional trading unit.
BitGo shares rose about 5% on Monday to close at $5.10, then gained about 3% more in after-hours trading.
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