Revenue after direct costs was $37.3 million, because BitGo books digital asset sales gross at a 15 basis point margin. Adjusted EBITDA was a $4.3 million loss against a $13.5 million profit a year earlier.
BitGo Holdings reported third-quarter revenue of $2.85 billion on November 9, down 50.9% from a year earlier and 34.1% from the second quarter, and net income of $44.1 million against $22.7 million in the same quarter of 2025. The operating business lost money; the profit came from a mark on bitcoin BitGo holds itself. Ali Vapra, who presented the figures on the custodian's earnings call, attributed the improvement to “a $71.5 million unrealized mark-to-market gain on digital assets,” a sum larger than net income itself.
The revenue line is large and falling for the same reason. BitGo books digital asset sales gross, and that business accounted for $2.7 billion of the quarterly total, down 52% from a year earlier and 35.2% from the second quarter. After cost of sales it contributed about $4.2 million, a margin of 15 basis points, down from 17 in the prior quarter and 20 a year earlier. The Block, reading the results release, put revenue after direct costs across the company at $37.3 million, down 32.1% year over year. Gross revenue at a custodian that trades as principal says little about what the business keeps, a gap Circle has described in its own accounts.
Set against the $56.6 million of operating expenses excluding direct costs that the company reported on the call, down 5.5% sequentially and up 10.7% from a year earlier, those two figures leave an operating loss of about $19.3 million. The Block put the reported figure at $19.2 million. Adjusted EBITDA was a loss of $4.3 million, close to the $4.2 million loss of the second quarter but a reversal from a $13.5 million profit in the third quarter of 2025. On that measure the operating business deteriorated over the year while net income nearly doubled.
Mike Belshe, BitGo's co-founder and chief executive, traced the revenue decline to trading. “Our revenue performance reflected continued weakness in digital asset trading activity,” he said, adding that after prices rose in mid-August about two-thirds of the clients who traded in the second quarter traded less in the third. Vapra said larger clients shifted toward holding positions as prices recovered and that trading stayed weak through the first half of the quarter amid low volatility. He also said that “Profitability and margin were impacted by an unfavorable mix of higher activity and lower margin stablecoin transactions.”
The gain that carried the quarter rests on 2,399 bitcoin held on the company's own balance sheet, carried at a fair value of about $200.4 million at September 30. Those two figures imply roughly $83,500 a coin. An unrealized mark moves in both directions, and bitcoin fell below $74,000 on November 9, below the level implied by the quarter-end carrying value. A mark at that price would reduce the carrying value rather than add to it. BitGo gave no fourth-quarter figure and no quantitative guidance.
Client assets tell a different story from the revenue line. Assets on the platform stood at $59.9 billion at the end of the quarter, down from $65.2 billion three months earlier, but on the company's normalized basis, which adjusts for price moves, they were $59.9 billion against $59.6 billion. Staked assets fell to about $10.5 billion from $11.9 billion as reported and rose to $10.5 billion from $10.4 billion normalized. The Block reported normalized assets up 32% from a year earlier. The reported declines are mostly price rather than clients leaving.
BitGo completed its acquisition of NYDIG's institutional trading business during the quarter and extended off-exchange settlement connectivity, including with OKX, through the Go Network, its institutional settlement and trading infrastructure. Belshe described the aim as a platform where “a client should be able to reach liquidity everywhere without moving assets off our platform,” and said of the direction of travel, “This is what industry maturation looks like. This is what institutions demand.” Management said NYDIG would contribute significantly in 2027 without giving figures.
The company repurchased about $25 million of stock during the quarter under a $50 million authorization, leaving roughly half of it unused. Miners have been selling coins to fund the same kind of program, and Hut 8 sold 2,148 bitcoin to fund $175 million of buybacks last week. BitGo shares, listed on the New York Stock Exchange as BTGO, closed at $5.10 on November 9, up 4.94%, and rose further after the results were released.
The shape of the quarter is not BitGo's alone. Coinbase reported net income up 66% on net revenue down 34% for its own third quarter at the end of October. Belshe closed the call by saying the company believes “we are still in the early stages of institutional adoption” of digital assets, and offered no numbers for the fourth quarter to set against that.
