BitGo's Q3 revenue fell 50.9% from a year earlier to $2.85 billion as digital asset sales dropped. Net income still rose to $44.1 million, driven mainly by an unrealized gain on the company's digital asset treasury.
BitGo reported Q3 revenue of $2.85 billion, down 50.9% from a year earlier and 34.1% from the prior quarter. The company attributed the decline to weaker digital asset trading activity.
Digital asset sales fell 52% year-over-year and 35.2% sequentially amid a continued soft crypto trading environment. BitGo also pointed to a higher mix of lower-margin stablecoin transactions. After direct costs, revenue was $37.3 million, down 32.1% from a year earlier.
Treasury gains lift net income
Profit moved the other way. BitGo's net income rose to $44.1 million, up from $22.7 million last year, primarily because of a $71.5 million unrealized gain on its digital asset treasury.
As of Sept. 30, the company held 2,399 BTC on its own balance sheet, valued at $200.4 million. Even so, BitGo recorded an operating loss of $19.2 million and an adjusted EBITDA loss of $4.3 million.
Client growth and share repurchases
Despite the weaker trading revenue, crypto.news reported that BitGo counted 6,640 clients, up 33.1% from 4,988 a year earlier. Assets on the platform fell to $59.9 billion from $104 billion, according to the same report.
BitGo said normalized assets on the platform rose 32% year-over-year when adjusted for price changes. During the quarter, it completed the acquisition of NYDIG's institutional trading business and repurchased $24.7 million of common stock under its $50 million authorization.
BitGo's NYSE-listed shares rose 4.94% to close at $5.10 on Monday.
Sources: The Block, crypto.news
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