BitGo Holdings reported third-quarter net income of $44.1 million, up 94.4% from $22.7 million a year earlier, even as total revenue plunged 50.9% year over year to $2.85 billion. The profit improvement was largely driven by a $71.5 million unrealized gain on BitGo's digital-asset treasury, while adjusted EBITDA remained negative at a loss of $4.3 million.
Digital asset sales generated $2.72 billion in revenue, down 52% year over year, but transaction costs left a contribution margin of just $4.2 million, or 15 basis points. Direct costs totaled $2.81 billion, and revenue after those costs fell 32.1% to $37.3 million. Operating expenses excluding direct costs declined 5.5% sequentially to $56.6 million, but the company still recorded an operating loss of approximately $19.2 million.
BitGo's stock closed Monday's regular session at $5.10, up 4.94%, before slipping 1.14% in after-hours trading to $5.04 following the earnings release. The company reported diluted earnings of $0.36 per share, compared with $0.15 a year earlier and a loss of $0.16 in the prior quarter.
Operationally, BitGo ended September with 6,640 clients, up 33.1% year over year, and about 1.3 million users. Reported platform assets fell to $59.9 billion from $104 billion, but on a normalized basis using current-quarter median crypto prices, platform assets rose 31.9% and normalized staked assets rose 41.1%. The company held 2,399 Bitcoin worth $200.4 million on its balance sheet and $143.2 million in cash and cash equivalents.
BitGo also completed its acquisition of NYDIG's institutional trading business, adding derivatives, structured products, financing and trading capabilities, while expanding OKX settlement arrangements internationally. Stablecoin-as-a-Service revenue climbed 52.5% year over year to $37.4 million, staking revenue reached $68.2 million, and BitGo repurchased $24.7 million of common stock during the quarter.
CEO Mike Belshe said the company expanded its global footprint and completed the NYDIG acquisition, highlighting normalized asset and staking growth.
