BitGo posted a $19 million net loss for the second quarter of 2026 even as revenue jumped nearly 80% year over year to $4.3 billion. An $18.8 million unrealized digital asset loss and thinner trading margins drove the swing, while the company also cut costs, authorized a share buyback and lost its chief financial officer.
Revenue jumps, but a swing to loss
BitGo posted a $19 million net loss in the second quarter of 2026. Revenue nonetheless rose nearly 80% year over year to $4.3 billion.
The loss narrowed from $60.7 million in the first quarter. Revenue climbed 14.7% quarter over quarter.
Margins compress on lower spreads
The year-over-year swing to a loss largely reflected an $18.8 million unrealized loss on digital assets, compared with a $55.8 million unrealized gain a year earlier. BitGo's trading margin on digital asset sales also fell to 17 basis points from 32 basis points in the first quarter, as lower spreads on some spot trades and a smaller derivatives mix weighed on results.
According to Cointelegraph, CEO Mike Belshe attributed the weaker margins to "lower spreads on certain spot transactions", pointing to a smaller contribution from derivatives. Its stablecoin business fared better, with Stablecoin-as-a-Service revenue up 148% to $38.8 million. Staking revenue fell 28.8% to $64.7 million over the same period.
Cost cuts, buyback and a CFO exit
BitGo authorized a share repurchase program of up to $50 million and expects its cost-cutting measures to generate about $15 million in annualized cash savings. The company cut its workforce by about 15% in June and expects expenses to decline in the third quarter. CFO Ed Reginelli will resign effective Sept. 15, and BitGo has started a formal search for a successor.
Client growth continues despite lower crypto prices
BitGo's client count grew 26.2% year over year to 5,833. Normalized platform assets, which adjust for price swings, reached $65.2 billion during the quarter. BTGO shares fell 1.8% in overnight trading to $4.90 after closing Wednesday up 0.6% at $4.99, according to Yahoo Finance.
Sources: Cointelegraph, crypto.news
Trading involves risk.
Risk Disclaimer
