BitGo Revenue Fell 51% in Q3, While Profit Increased to $44.1 Million

American company BitGo Holdings (NYSE: BTGO), providing custody, trading, and management services for digital assets, reported a 50.9% decrease in revenue for the third quarter of 2026. The figure amounted to $2.85 billion compared to $5.81 billion for the same period last year. Compared to the second quarter, revenue decreased by 34.1%.

Despite the drop in revenue, BitGo's net profit increased from $22.7 million to $44.1 million, up 94.4% year-over-year. According to the report published on November 9, the main factor for the growth was unrealized income from the revaluation of its own digital assets amounting to $71.5 million. Meanwhile, the results of the company's core operations were significantly weaker than the final net profit figure.

Why BitGo's Revenue Almost Halved

The main reason for the revenue decline was the reduction in digital asset sales operations amid weak trading activity in the cryptocurrency market. Revenues from this segment amounted to $2.72 billion, which is 52% less year-over-year and 35.2% lower than the previous quarter's result. Additional pressure on profitability was exerted by the increase in the share of operations with stablecoins, which bring the company a lower margin.

At the same time, a significant portion of BitGo's reported revenue is linked to direct costs of conducting digital asset operations. In the third quarter, these costs, along with commissions from other segments, amounted to about $2.81 billion. After deducting these, $37.3 million remained, which is 32.1% less than the comparable figure from last year.

Other business segments showed mixed results. Revenue from staking amounted to $68.2 million, down 24.1% year-over-year, while subscription and customer service brought in $25.6 million. Meanwhile, the Stablecoin-as-a-Service segment increased revenue by 52.5% to $37.4 million, thanks to the development of stablecoin issuance and servicing programs.

Net Profit Increased Due to Digital Asset Revaluation

Despite the increase in net profit, BitGo recorded an operating loss of $19.2 million compared to an operating profit of $3.9 million a year earlier. Adjusted EBITDA was also negative at -$4.3 million, whereas in the third quarter of 2025, the company achieved a positive result of $13.5 million.

The difference between net profit and operating figures is largely explained by the revaluation of cryptocurrency reserves. The unrealized income of $71.5 million reflects the change in the value of digital assets on the balance sheet and does not mean that the company received a comparable amount of cash from their sale.

As of September 30, BitGo held 2,399 BTC, valued at $200.4 million. Cash and cash equivalents on the company's balance sheet amounted to $143.2 million. These bitcoins are part of BitGo's own reserves and do not include client assets held in custody.

BitGo Expands Institutional Services

Alongside the reduction in trading revenue, the company continued to develop infrastructure for institutional clients. In the third quarter, BitGo completed the acquisition of NYDIG's institutional trading business, expanded over-the-counter settlement capabilities through integration with OKX, and continued work on tokenization tools for stocks.

According to the company, the value of assets on the platform, adjusted for market price changes, grew by 32% year-over-year and reached $59.9 billion. However, without such adjustment, the figure decreased by 42.4% compared to the third quarter of 2025. These data show the difference between the change in the volume of serviced assets and the impact of market prices on their dollar valuation.

During the quarter, BitGo also repurchased its own shares for $24.7 million as part of a previously approved program of up to $50 million. CEO Mike Belshe highlighted the development of the Go Network settlement infrastructure and tokenized financial instruments as key areas for the company.

Thus, BitGo's report shows a decline in revenue from trading operations while simultaneously expanding institutional services. Net profit increased mainly due to the revaluation of digital assets, whereas the operating result remained negative.