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Crypto custodian BitGo's revenue falls 51% as trading slows

Why it matters

Looking after crypto for clients pays less when markets go quiet, and stablecoin work earns thinner margins. If you rely on a listed custodian, check its operating results, not just headline profit.

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The short version

BitGo, a US company that looks after crypto for big investors, said its revenue for July to September fell about 51% from a year earlier as clients traded less, The Block reported on 10 November. Its profit still rose to $44.1m, mainly because the bitcoin it owns went up in value on paper.

Here's what happened. BitGo's third-quarter revenue fell 51% from a year earlier, The Block reported, citing the company's results. The main reason was lower sales of digital assets to clients, down 52%, in a soft trading market with more low-margin stablecoin business.

Revenue after direct costs, a better guide to what BitGo keeps, was $37.3m, down 32.1%.

So how did profit rise? Net income was $44.1m, up from $22.7m a year earlier, mostly thanks to a $71.5m paper gain on the crypto BitGo holds itself. It had 2,399 bitcoin on its balance sheet at 30 September, worth $200.4m. Its operating loss was $19.2m, The Block said.

During the quarter BitGo bought NYDIG's institutional trading business and bought back $24.7m of its own shares. Its shares, listed on the NYSE as BTGO, rose 4.94% to $5.10 on Monday.

Where this comes from

  1. BitGo revenue falls 51% in Q3 as trading slows; net income rises on treasury gains · The Block

Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.

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