BitGo’s crypto gains flip the script: $44.1M profit despite a $19.2M operating loss 💰

US-listed digital asset infrastructure company BitGo Holdings reported $44.1 million in third-quarter net income, nearly double a year earlier, as rising crypto holdings helped offset a $19.2 million operating loss. The company recorded a $71.5 million unrealized gain on digital assets in the quarter ended Sept. 30, according to its quarterly filing.

Revenue fell 51% from a year earlier to $2.85 billion as digital asset sales slowed, BitGo said Monday. The company generally records the full proceeds of those sales as revenue and accounts for the costs separately. Revenue after direct costs declined 32% to $37.3 million, while operating income stood at $3.9 million in the year-ago period.

BitGo missed Wall Street estimates for both revenue and earnings in the third quarter, with revenue coming in 32% below the $4.2 billion consensus shared by US financial research firm Zacks Investment Research. Its shares rose 4.9% on Monday to close at $5.10, reversing some of the 60% decline seen since early in the year, according to Yahoo Finance.

The company reported holding $143 million of cash and cash equivalents and 2,399 Bitcoin ($BTC) in corporate treasury holdings, with a fair value of $200 million as of Sept. 30. In June, BitGo laid off about 15% of its staff to refocus on areas including trading, stablecoins and artificial intelligence. BitGo also bought NYDIG’s trading arm to deepen its institutional crypto push.