Canaccord and Wells Fargo cut BitGo price targets to $12 and $9 after revenue falls 50.9%
Key Facts
BitGo reported results on Nov. 9 for the third quarter ended Sept. 30, 2026, posting total revenue of $2.8519 billion, down 50.9% year over year and 34.1% from the previous quarter. The announcement came ahead of analyst price-target cuts the following day. Canaccord Genuity cut its price target to $12 from $15, while maintaining its Buy rating. Wells Fargo also cut its target to $9 from $11, maintaining the same recommendation, and Mizuho lowered its target to $9 from $11 while keeping its Outperform rating. The cuts reflect analysts’ estimates for the stock after quarterly results showed a sharp drop in revenue, despite the company posting net income and earnings per share.
BitGo attributed the revenue decline mainly to lower digital-asset sales activity amid continued weakness in cryptocurrency trading. Digital-asset sales revenue was $2.72 billion in the third quarter, compared with $5.6618 billion in the same period of 2025. The company said revenue after direct costs was $37.3 million, down 12.1% from the previous quarter and 32.1% from a year earlier. Rosenblatt estimated net revenue at about $37 million, below its estimate of $51 million and the consensus forecast of $47 million. The gap between total revenue and net revenue highlights the importance of separating digital-asset sales volumes from revenue remaining after direct costs when assessing the company’s results.
BitGo, by contrast, posted net income of $44.1 million, compared with a net loss of $19 million in the second quarter and a profit of $22.7 million a year earlier. The company attributed the improvement mainly to an unrealized gain of $71.5 million in its digital-asset treasury. Diluted earnings per share were $0.36, following a loss of $0.16 in the previous quarter and earnings of $0.15 in the third quarter of 2025. But adjusted EBITDA showed a loss of $4.3 million, compared with a loss of $4.2 million in the second quarter and a profit of $13.5 million a year earlier. The figures show a divergence between improved net income, driven by the treasury gain, and a continued loss on the adjusted earnings measure.
Institutional activity indicators grew alongside weak revenue. Staked assets under management rose 41% year over year, which BitGo said reflected continued growth in institutional adoption. Its customer count also increased to 6,640 on Sept. 30, 2026, from 4,988 on the same date a year earlier. The company completed its acquisition of NYDIG’s institutional trading business and said the deal expands its capabilities in derivatives, structured products and financing. During the quarter, it repurchased $24.7 million of common stock under a $50 million buyback authorization.
In stock trading, a report said BitGo shares rose 4.94% and closed at $5.10 in the Nov. 9 session, then added 2.9% in extended trading. That move differs from the decline cited in some circulating figures, and available sources do not establish a direct causal link between the price change and the company’s results or the analyst cuts. In second-quarter results announced on Aug. 12, BitGo said investment-control measures were expected to generate about $15 million in annual cash savings. The company scheduled a call to discuss its third-quarter results for Nov. 9 at 5:00 p.m. Eastern time. The quarter’s report thus combined revenue weakness tied to trading activity with growth in some customer and institutional-asset indicators, and improved net income supported by an unrealized gain.