BitGo's second quarter revenue reached $4.33 billion, with strong growth

BitGo Holdings 'second quarter 2026 financial report: revenue increased but net loss of US$19 million

According to the company's financial report materials filed with the US Securities and Exchange Commission on August 12, BitGo Holdings had a net loss of US$19 million in the second quarter of 2026, although revenue increased by 79.6% year-on-year to US$4.33 billion. In comparison, net profit of $38.3 million was achieved in the same period last year.

This loss is smaller than the US$60.7 million loss BitGo reported in the first quarter of 2026-the company's first quarter as a public company since listing on the New York Stock Exchange in January. But the causes of the two losses were different, and the second-quarter loss may be more troubling.

A completely different type of loss than in the first quarter

The first quarter loss was driven mainly by a non-cash event: a $53.7 million paper loss from Bitcoin held on BitGo's balance sheet, compounded by IPO-related costs. This is a Bitcoin price issue, not a business issue, and no matter how BitGo manages its custody or trading business, the loss will change with market fluctuations.

The loss in the second quarter was due to the company's internal business. The company's digital asset sales division contributed $4.2 billion in revenue during the quarter, but its profit margin fell to 17 basis points from 32 basis points in the first quarter, compared with 19 basis points in the same period last year. During the earnings call, BitGo executives attributed the decline to two structural changes: derivatives trading volume, whose profit margins are higher than spot trading, fell to about $1 billion from about $3 billion in the first quarter; and at the same time, a large pledge client moved in at a lower rate than the rest of the contracts. In addition, an unrealized loss of $18.8 million on BitGo's digital assets also dragged down the quarter's results, compared with an unrealized gain of $55.8 million in the same period last year.

Comparative data for the past three quarters

The following is a comparison of key indicators for the second quarter of 2025, the first quarter of 2026 and the second quarter of 2026:

Revenue: US$3.8 billion → US$4.33 billion

Net profit (loss): US$38.3 million → US$60.7 million → US$19 million

Adjusted EBITDA: US$3 million → US$1.7 million → US$4.2 million

Digital asset sales margin: 19 basis points → 32 basis points → 17 basis points

Still growing business segment

Under pressure from margins, BitGo's basic platform continues to expand. The number of platform customers increased by 26.2% year-on-year to 5833, platform standardized assets increased by 31.4% to US$65.2 billion, and standardized pledged assets increased by 36.1% to US$11.9 billion. CEO Mike Belshe said in the company's earnings press release: "We have achieved platform asset growth, deepened customer relationships, streamlined cost structures, and continued to invest in the ability to make the platform more valuable to customers."

The company also laid off about 15% of its workforce at the end of June, when it positioned it as a transition to artificial intelligence infrastructure and stablecoins. During this conference call, the company said that the layoffs, combined with cloud infrastructure adjustments, could save approximately $15 million annually in costs. In addition, the board has approved a $50 million share repurchase plan.

Chief Financial Officer Ed Reginelli will leave in the next quarter;BitGo has not yet named a successor. "It's an honor to be involved in building this company," Reginelli said on a conference call.

What needs to be done next

Management's own goal is to achieve "close to breakeven and slightly profitable" in the third quarter, while digital asset sales margins return to the historical range of 20 to 25 basis points. The target depends on whether the combination of derivatives and pledge businesses can rebound, rather than the price movement of Bitcoin-a very different direction from the direction BitGo bet in the first quarter.

Ahead of the earnings release, analyst sentiment remained bullish in both loss-making quarters: 10 of the 13 analysts covering the stock gave a "strong buy" rating, and the average price target implied about 58% of BitGo's recent share price upside, an expectation based on forecasts for the 2026 profit path. The same week that BitGo released quarterly data, Bank of New York Mellon reported record quarterly revenue and raised expectations, while adding cryptocurrency pledge business to its custody platform-a reminder that BitGo's profit margin issues are emerging just as a larger, profitable custodian enters its territory.