BitGo's Bitcoin (BTC) Treasury Gains Lift Q3 Net Income to $44.1 Million

Treasury Gain Carries Q3 Profit

BitGo Holdings (NYSE: BTGO) closed the third quarter of 2026 with $44.1 million in net income, up 94.4% year over year, alongside a 51% revenue decline that missed Wall Street estimates. The crypto custodian's quarterly filing with the SEC shows a $71.5 million unrealized gain on digital assets held in its treasury for the three months ended September 30, the item that carried the bottom line above an operating loss of $19.2 million. A year earlier, the company reported operating income of $3.9 million. Diluted earnings per share came in at $0.36, against $0.15 in the year-ago quarter and a loss of $0.16 in the second quarter.

Revenue fell 50.9% to $2.85 billion from $5.81 billion, a comparison that flatters the decline: BitGo records the full proceeds of client digital asset sales as revenue and accounts for the costs separately. Those sales generated $2.72 billion, down 52% annually, and contributed only $4.2 million after direct costs, a margin of 15 basis points versus 17 in the second quarter and 20 a year earlier. Company-wide revenue after direct costs fell 32% to $37.3 million. Management tied the softer sales to weaker trading activity and a growing share of lower-margin stablecoin transactions. On the estimates side, revenue landed 32% below the $4.2 billion consensus compiled by research firm Zacks Investment Research, and adjusted EBITDA showed a loss of $4.3 million. Operating expenses excluding direct costs fell 5.5% sequentially to $56.6 million after cost measures introduced mid-year. The treasury itself held 2,399 Bitcoin (BTC) with a fair value of $200.4 million as of September 30, alongside $143 million in cash and cash equivalents. In June, BitGo cut about 15% of its staff to refocus on trading, stablecoins and artificial intelligence.

BTGO Shares and the NYDIG Expansion

The market moved ahead of the release. BTGO closed Monday's regular session at $5.10, up $0.24 or 4.94%, on volume of roughly 915,000 shares, then slipped 1.14% to $5.04 in after-hours trading once the results were published. The stock is still down about 60% since the start of the year and traded between $4.36 and $24.50 over the past 52 weeks. Client counts grew through the downturn: BitGo reported 6,640 clients, up 33.1% from 4,988 a year earlier, serving roughly 1.3 million users. Reported assets on platform fell to $59.9 billion from $104 billion, and staked assets dropped to $10.5 billion from $28.6 billion. Measured at this quarter's median crypto prices instead, normalized platform assets rose 31.9% and normalized staked assets rose 41.1% year over year. Stablecoin-as-a-Service revenue reached $37.4 million, up 52.5% annually, with sponsor fees leaving a 7.7% take rate against 3.6% a year earlier. Staking revenue totaled $68.2 million, down 24.1% year over year but up 5.4% sequentially, while subscriptions and services added $25.6 million. BitGo also closed its acquisition of NYDIG's institutional trading business during the quarter, adding derivatives, structured products, financing and market maker capabilities, expanded its international settlement arrangements with OKX and launched BitGo Prime's Global Liquidity Layer. Riot Platforms, a crypto mining company, transferred its Bitcoin (BTC) custody from NYDIG to BitGo on October 29, ending a relationship that dated to November 2023. The company bought back $24.7 million of common stock under its $50 million authorization, leaving roughly $25.3 million unused. Chief executive Mike Belshe framed the quarter around expansion, stating in the earnings release: “We expanded our global footprint and completed the acquisition of NYDIG’s institutional trading business.”

Read together, the two halves of the quarter describe a business whose reported revenue is far more volatile than its economics. The headline line tracks client spot trading volume, and after direct costs that line is thin enough that a single treasury mark decides profit or loss. The $71.5 million gain is unrealized and moves with the market, so earnings quality here depends on price direction: a renewed bull market would rebuild the treasury line, while a drawdown would erase it. What management controls is cost and mix. Operating expenses fell after the mid-year layoffs, the stablecoin take rate more than doubled year over year, and the NYDIG deal plus the Riot custody transfer point the growth story at institutional trading and custody share rather than retail volume.