BitGo Revenue Falls 50.9% as Clients Trade Less, Earnings Show

BitGo Holdings (NYSE: BTGO) posted a 50.9% year-over-year drop in third-quarter revenue to $2.9 billion, as weaker digital asset trading and a shift toward lower-margin stablecoin transactions squeezed results. The company still recorded net income of $44.1 million, but that figure leans on an unrealized gain on digital assets rather than operating strength.

Revenue also fell 34.1% from the second quarter. Direct costs declined to roughly $2.8 billion, and adjusted EBITDA (a profitability metric excluding interest, taxes, depreciation and amortization) came in at a $4.3 million loss — versus a $4.2 million loss in Q2 and a $13.5 million profit a year earlier.

Why did clients pull back?

Co-Founder and CEO Mike Belshe said approximately two-thirds of clients who traded with BitGo in the second quarter traded less in the third quarter after digital asset prices rose in mid-August. Chief Accounting Officer Ali Vapra added that trading improved late in August but didn't fully offset the earlier weakness, as some larger clients chose to hold positions after prices recovered.

Digital asset sales revenue fell 52% year over year to $2.7 billion. After related costs, that business generated about $4.2 million — a margin of 15 basis points (0.15%), down from 17 in Q2 and 20 a year ago. A greater share of lower-margin stablecoin transactions hurt profitability further.

The swing to profit had accounting help: the $44.1 million net income, against a $19 million loss in Q2 and $22.7 million income a year earlier, reflected a $71.5 million unrealized mark-to-market gain on digital assets plus lower operating expenses. Expenses excluding direct costs fell 5.5% sequentially to $56.6 million, though the August acquisition of NYDIG's institutional trading business added roughly one month of costs.

How did staking and stablecoin services perform?

• Staking revenue: $68.2 million, up 5.4% sequentially but down 24.1% year over year. Higher Ethereum balances and prices helped; lower protocol reward rates and weaker token prices hurt.
• Stablecoin-as-a-Service: $37.4 million, down 3.8% from Q2 but up 52.5% year over year, on higher balances and fixed monthly fees from newly supported programs. Average daily reserve balances fell about 6% sequentially.
• Subscriptions and services: $25.6 million, down 7.2% sequentially on lower non-recurring engineering work. Belshe said such projects, including new-coin work, are hard to predict, and BitGo prefers projects leading to recurring revenue.

At quarter-end prices, assets on platform exceeded $83 billion and staked assets hit roughly $16 billion. On the company's reported basis (using median quarterly digital asset prices), assets on platform fell to about $59.9 billion from $65.2 billion, while normalized assets on platform rose slightly from $59.6 billion and normalized staked assets edged up to $10.5 billion from $10.4 billion.

What's next for expansion and tokenized assets?

BitGo closed the NYDIG institutional trading acquisition on Aug. 27 and launched BitGo Global Markets, adding derivatives, structured products and financing. Belshe said the company gave no financial guidance for the acquired business but expects significant contributions in 2027. Belshe also flagged an expanded off-exchange settlement integration with OKX, letting institutions access exchange liquidity while keeping assets in BitGo custody; he doesn't expect significant near-term revenue from the supporting Go Network, "but expects that to change over time."

Chief Revenue Officer Chen Fang called tokenized equities a commercial priority. BitGo is building goStocks to bring traditional equities on-chain, initially held in qualified custody at BitGo Bank & Trust, with broader access pending regulatory approvals. The WisdomTree Treasury Money Market Digital Fund was integrated into BitGo Mint, letting institutional clients turn idle cash into yield-generating collateral.

Where does the balance sheet stand?

BitGo ended Q3 with $143.2 million in cash and equivalents plus 2,399 company-owned Bitcoin valued near $200 million. It carried no corporate-level debt outside lending-related borrowings. It repurchased about $25 million of stock, leaving roughly $25 million under authorization. Belshe said the company serves a little over 6,600 clients — noting a discrepancy in prior counting — and Q3 revenue split roughly evenly between U.S. and international customers.

A profitable quarter on paper, but the underlying trading engine slowed while the company bets on 2027.