BitGo Holdings, Inc. (BTGO) closed Monday's session at $5.10, up 4.94%, ahead of the release of its third-quarter 2026 report, then slipped 1.14% in after-hours trading to $5.04 once the numbers came out. The crypto custodian reported net income of $44.1 million, a 94% increase from a year ago, with diluted earnings of $0.36 per share versus $0.15 in the year-earlier period.

The profit, however, came from a paper gain rather than cash operations: BitGo booked a $71.5 million unrealized gain on its digital asset treasury. Day-to-day results told a different story. Revenue fell 51% to $2.85 billion from $5.81 billion a year earlier, missing the $4.2 billion Zacks consensus estimate by 32%. The company posted an operating loss of about $19.2 million and an adjusted EBITDA loss of $4.3 million. Because unrealized gains move with the market, the composition of that profit matters as much as its size when weighing the headline increase against the operating results reported alongside it.

In a post on X, the company highlighted client growth, its global expansion and the completion of the NYDIG acquisition:

$BTGO reported Q3 2026 results this afternoon. Clients on platform increased 33% year over year, reflecting continued growth in institutional adoption. We expanded our global footprint and completed the acquisition of NYDIG's institutional trading business. We're grateful for…

— BitGo (@BitGo) November 9, 2026 (x.com)

The message mirrored the themes in the report itself: growing institutional usage on the platform, an expanded international footprint, and the consolidation of NYDIG's institutional trading operations.

Why Revenue Dropped

Digital asset sales, the largest revenue component, brought in $2.72 billion, down 52% from a year ago. BitGo attributed the decline to weaker crypto trading and a larger mix of low-margin stablecoin activity. After direct costs, those sales left just $4.2 million, a margin of 15 basis points, compared with 17 basis points in the second quarter and 20 basis points a year earlier. For a custody and trading business, that structure means the reported top line moves with trading volumes and asset mix, making revenue after direct costs a closer read on the company's underlying scale than gross sales.

Revenue after direct costs fell 32% to $37.3 million. Operating expenses, excluding direct costs, dropped 5.5% from the prior quarter to $56.6 million. The cost reductions followed a June layoff of about 15% of staff, which BitGo said was intended to refocus the business on trading, stablecoins and artificial intelligence.

Clients, Stablecoins and Buybacks

Client growth of 33% year over year, which the company attributed to continued institutional adoption, brought the total to 6,640 clients at quarter-end, up from 4,988 a year earlier. The platform served about 1.3 million users. Platform assets fell to $59.9 billion from $104 billion as crypto prices dropped. Adjusted for current prices, platform assets rose 32% and staked assets rose 41%. That divergence — more clients and more assets at current prices, fewer in dollar terms — shows how directly custody platform economics track the underlying market.

Stablecoin-as-a-Service revenue rose 52.5% year over year to $37.4 million, though it slipped 3.8% from the prior quarter — growth in one of the business lines BitGo has identified as a refocus priority. Staking revenue came in at $68.2 million, down 24% on the year.

BitGo repurchased $24.7 million of its own stock under a $50 million buyback plan, leaving about $25.3 million available. The company closed its acquisition of NYDIG's institutional trading business during the quarter and also expanded its OKX settlement setup abroad. Chief Executive Mike Belshe said BitGo "expanded our global footprint." The remaining buyback capacity and the integration of the newly acquired NYDIG trading operations stand out as concrete items to track in the quarters ahead.

As of Sept. 30, BitGo held $143.2 million in cash and 2,399 Bitcoin worth $200.4 million. In a separate custody development, Riot Platforms finished moving its Bitcoin custody from NYDIG to BitGo on Oct. 29 — an example of how institutional custody relationships can move between providers.

The stock has traded between $4.36 and $24.50 over the past 52 weeks and is down about 60% this year, leaving shares near the low end of that range. In after-hours trading Monday, it sat at $5.04.

Source: Blockonomi. Official release: BitGo Investor Relations.