BitGo Holdings, Inc. (NYSE: BTGO) 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.
| Metric | Q2 2025 | Q1 2026 | Q2 2026 | YoY / QoQ Change |
|---|---|---|---|---|
| Total revenue | $2.41B | $3.77B | $4.33B | +79.6% YoY / +14.7% QoQ |
| Net income/(loss) | $38.3M | $(60.7M) | $(19.0M) | — |
| Adjusted EBITDA | $3.0M | $(1.7M) | $(4.2M) | — |
| Digital Asset Sales margin | 19 bps | 32 bps | 17 bps | -15 bps QoQ |
| Clients | 4,621 | 5,569 | 5,833 | +26.2% YoY |
| Normalized assets on platform | $49.6B | $61.2B | $65.2B | +31.4% YoY |
| Normalized assets staked | $8.7B | $11.5B | $11.9B | +36.1% YoY |
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.
$BTGO Q2 2026 Highlights
1) Clients on Platform, Normalized Assets on Platform, and Normalized Assets Staked increased 26%, 31%, and 36% year-over-year, respectively, reflecting continued growth in institutional adoption
2) Sharpened investment priorities and strengthened the… https://t.co/D4Ckh1bdT0
— BitGo Investor Relations (@BTGOInvestor) August 12, 2026
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 $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.
- January 2026: BitGo launches its derivatives business.
- Q1 2026: Derivatives generate roughly $3 billion in notional volume, while Digital Asset Sales margin reaches 32 basis points.
- Late June 2026: BitGo cuts roughly 15% of its workforce as part of a shift toward AI infrastructure and stablecoins.
- Q2 2026: Digital Asset Sales margin falls to 17 basis points as the derivatives mix declines and a large staking client is onboarded at lower contractual rates.
- Q2 2026: BitGo announces approximately $15 million in annualized cash savings from the workforce reduction and cloud infrastructure changes.
- Q2 2026: The board authorizes a $50 million share repurchase program.
- Q3 2026 target: Management aims to move the company closer to break-even or slightly profitable, with Digital Asset Sales margins expected to recover toward the historical 20-to-25-basis-point range.
BitGo launched Quantum Risk Management tools for institutional Bitcoin wallets, helping clients assess and reduce exposure to future quantum-computing threats. The launch builds on BitGo’s Q2 push to expand institutional infrastructure, following its derivatives growth and broader investment in custody and security.
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.
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