BitGo cuts ~90 jobs, 15% of workforce, as CEO Belshe pivots to stablecoins, trading, and AI-powered infrastructure. Shares fell 5%, extending a 73% decline from IPO.
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BitGo will cut nearly 15% of its workforce, roughly 90 employees out of a total of 603. CEO Mike Belshe confirmed the layoffs and said the company is redirecting resources toward stablecoins, trading, security, and what it calls “AI-powered infrastructure.”
BitGo shares fell nearly 5% on the news. The stock has dropped 73% from its IPO price.
The cuts mark a strategic pivot for the crypto custody firm. BitGo has long focused on secure storage for digital assets. Now it plans to build out stablecoin operations and apply artificial intelligence to trading and security functions. Belshe did not specify which AI applications the company will pursue.
The shift comes as the crypto industry grapples with lower transaction volumes and tighter margins. Custody providers face pressure to diversify revenue beyond storage fees. Stablecoins have emerged as a growing source of fee income, with firms like Circle and Paxos dominating issuance. BitGo's move into AI suggests it sees automation as a way to reduce costs and offer new services.
BitGo's layoffs follow a trend of crypto companies cutting staff to preserve cash. The sector has shed thousands of jobs since the 2022 market downturn. BitGo itself raised a $100 million Series C in 2021 at a $1.75 billion valuation. The current restructuring indicates the company is repositioning for a different market environment.
The move mirrors similar shifts elsewhere. Framework Ventures, a crypto-focused venture firm, recently raised $400 million to expand beyond digital assets into AI and energy. The convergence of crypto and AI infrastructure is drawing attention from both startups and established players.
For BitGo, the pivot to stablecoins and AI could open new revenue streams. Stablecoins require robust custody and issuance platforms, an area where BitGo already has expertise. AI-powered security tools could differentiate its offering in a crowded market.
The company's share price decline reflects broader skepticism about crypto valuations. BitGo went public via a SPAC merger in 2021 at a valuation of $1.75 billion. Since then, the stock has lost most of its value, mirroring the downturn in crypto markets.
BitGo shares fell nearly 5% on the announcement, adding to a 73% decline from the IPO price.
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