BitGo Posts Strong Q2 Growth With $4.33B Revenue

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BitGo Holdings posted a net loss of $19.0 million for the second quarter of 2026, even as revenue rose 79.6% year over year to $4.33 billion, according to the earnings exhibit the company filed with the Securities and Exchange Commission on August 12. The loss compares with net income of $38.3 million in the same quarter last year.

That’s a smaller loss than the $60.7 million BitGo reported in the first quarter of 2026, its first as a public company after listing on the NYSE in January. But the two losses came from different places, and the new one is arguably the less comfortable of the two.

A different kind of loss than Q1’s

Q1’s loss was driven largely by a single non-cash event: a $53.7 million paper loss on the bitcoin BitGo holds on its own balance sheet, compounded by costs tied to the IPO itself. That’s a bitcoin-price problem, not a business problem, and it moves with the market regardless of how BitGo runs its custody or trading operations.

Q2’s loss traces to something inside the business instead. The company’s Digital Asset Sales unit, which generated $4.2 billion of the quarter’s revenue, saw its margin fall to 17 basis points from 32 basis points in the first quarter, and from 19 basis points a year earlier. On the earnings call, BitGo executives tied the drop to two changes in mix: derivatives volume, which carries fatter margins than spot trading, fell to roughly $1 billion from about $3 billion in Q1, and a large staking client was onboarded at lower contractual rates than the rest of the book. A separate $18.8 million unrealized loss on BitGo’s digital assets also weighed on the quarter, versus a $55.8 million unrealized gain in the same period last year.

Here’s how the last three quarters compare:

The parts of the business still growing

Underneath the margin pressure, BitGo’s underlying platform kept expanding. Clients on the platform rose 26.2% year over year to 5,833, normalized assets on platform grew 31.4% to $65.2 billion, and normalized assets staked climbed 36.1% to $11.9 billion. CEO Mike Belshe said the company “grew assets on platform, deepened client relationships, streamlined our cost structure, and continued investing in capabilities that make our platform more valuable to clients,” in comments included in the company’s earnings release.

The company also cut about 15% of its workforce in late June, a move it framed at the time as a pivot toward AI infrastructure and stablecoins. On this call, it attributed roughly $15 million in annualized cost savings to that reduction plus cloud infrastructure changes, and its board authorized a $50 million share buyback.

CFO Ed Reginelli is transitioning out of the role over the coming quarter; BitGo has not named a successor. “It has been a privilege to help build this company,” Reginelli said on the call.

What has to happen next

Management’s own target is to get “closer to break even, slightly profitable” in the third quarter, with Digital Asset Sales margins recovering toward a historical 20 to 25 basis point range. That target depends on the derivatives and staking mix bouncing back, not on bitcoin’s price direction, which is a different bet than the one BitGo was making in Q1.

Analyst sentiment tracked ahead of the print stayed bullish through both loss quarters: 10 of 13 covering analysts rated the stock a Strong Buy, with an average price target implying roughly 58% upside from BitGo’s recent share price, built on an expectation of a 2026 profitability path. The same week BitGo reported this quarter’s numbers, BNY Mellon reported record quarterly revenue and raised its outlook while adding crypto staking to its own custody platform, a reminder that BitGo’s margin problem is showing up just as a much larger, already-profitable custodian moves onto its turf.