BitGo Q2 revenue rises 80% to $4.3B as loss hits $19M

BitGo Holdings reported $4.33 billion in second quarter revenue on Aug. 12, up 79.6% from $2.41 billion a year earlier, as digital asset sales and its stablecoin business expanded. 

The company nevertheless recorded a $19 million net loss, compared with $38.3 million in net income a year earlier, according to its release. The loss narrowed sharply from $60.7 million in the first quarter.

The results provide a more mixed picture than the headline revenue increase suggests. Most of BitGo’s revenue comes from digital asset sales that are reported on a gross basis and carry nearly matching direct costs. The quarter also brought a 15% workforce reduction, continuing internal control weaknesses and a forthcoming change in chief financial officer.

BitGo’s $4.3B revenue came with $4.29B in direct costs

Digital asset sales generated $4.20 billion of revenue, up 84.3% year over year. However, the business incurred $4.19 billion of related direct costs, leaving about $7.1 million of margin. Its trading margin fell to 17 basis points from 32 basis points in Q1 as lower spreads on some spot trades and a smaller derivatives mix weighed on economics.

Stablecoin-as-a-Service revenue increased 148% to $38.8 million. That business carried $35.7 million of sponsor fees and an 8% take rate. Staking revenue moved the other way, falling 28.8% to $64.7 million, while subscriptions and services revenue rose 8.5% to $27.5 million.

As previously reported, BitGo’s first quarter revenue rose to $3.77 billion while its net loss widened to $60.7 million. Q2 therefore extended top line growth while producing a smaller GAAP loss than the previous quarter.

Client growth continued despite lower crypto prices

BitGo ended the quarter with 5,833 clients, up 26.2% from 4,621 a year earlier. Assets on the platform were $65.2 billion, down 27.8% from $90.3 billion on the unadjusted comparison. Using current quarter median digital asset prices to remove price effects, BitGo calculated normalized assets on platform at $65.2 billion, up 31.4% year over year.

Normalized assets staked rose 36.1% to $11.9 billion, although unadjusted staked assets were down 53.6% from the prior year. The company has continued expanding its institutional infrastructure outside custody. In July, Gate US joined BitGo’s off exchange settlement network, allowing institutions to trade while keeping underlying assets in BitGo Bank custody.

Loss narrows after cuts, but internal controls remain weak

The year over year earnings reversal was partly driven by BitGo’s own digital assets. It booked an $18.8 million unrealized loss during Q2, compared with a $55.8 million unrealized gain a year earlier. Adjusted EBITDA was negative $4.2 million, versus positive $3 million in Q2 2025 and a $1.7 million loss in Q1.

BitGo also recorded $1.3 million of restructuring costs after cutting nearly 15% of its workforce in June. Its earnings presentation says the reduction should produce about $9 million of annualized savings beginning in Q3, while its broader cost actions are expected to generate approximately $15 million in annualized cash savings. Those savings remain company projections.

A new filing also shows BitGo’s previously disclosed material weaknesses in financial reporting controls remain unresolved. Management cited weaknesses involving IT access, manual reviews, segregation of duties and finance staffing. BitGo said the problems have not caused a material misstatement in previously issued financial statements and that remediation work will continue during 2026.

CFO exit and Q3 outlook set the next tests

CFO Ed Reginelli informed the board Aug. 10 that he will resign effective Sept. 15. BitGo said the departure did not result from a disagreement over its operations, policies or practices. The company has started a formal successor search, while Reginelli will remain available in an advisory role during the transition, according to its filing.

For Q3, management “expect[s] reported revenue to be relatively flat versus Q2 performance” in digital asset sales. It forecasts broadly stable staking revenue, sequential growth in subscriptions and services, modest stablecoin growth and lower operating expenses. The outlook assumes digital asset prices and market activity remain near recent levels, making those figures conditional rather than guaranteed.

BitGo finished June with $159 million in cash, 2,523 company owned Bitcoin valued at $147.7 million and no corporate level debt. It also has a $50 million share repurchase authorization, though no shares had been bought under the program by June 30.

BTGO closed Aug. 12 at $4.99, up about 0.6% during the regular session. The earnings report arrived after the closing bell, meaning Thursday will provide the first full regular trading session after investors received the results.

BitGo (BTGO) shares price chart, source: Google Finance