BitGo Net Loss Widens to $60.7M Despite 112.6% Revenue Growth

BitGo Holdings reported first-quarter 2026 revenue of $3.77 billion, more than doubling from a year earlier. The digital asset custodian’s net loss widened to $60.7 million, driven by non-cash mark-to-market impacts on its Bitcoin treasury and elevated IPO-related stock-based compensation. The results expose a business scaling its operational footprint while income-statement volatility obscures the underlying economics.

Revenue Doubles to $3.77B; Net Loss Widens to $60.7M

BitGo’s top-line growth of 112.6% year-over-year was powered by two engines: a sharp pickup in digital asset sales volumes and a heavier contribution from Stablecoin-as-a-Service income. The firm’s Q1 filing detailed how each segment performed, revealing a revenue mix that is shifting toward recurring services even as spot trading activity cooled.

Digital Asset Sales Surge 127.9% Year-Over-Year

The Digital Asset Sales segment brought in roughly $3.7 billion, a 127.9% gain from the same quarter a year ago. That headline number was 39.3% lower sequentially. The sequential drop reflects the same softer crypto market analysis conditions that BitGo cited for the overall revenue decline from Q4 2025. Spot trading volumes compressed across the industry during the quarter, and BitGo’s own shift toward derivatives further reduced the gross revenue contribution from spot.

Stablecoin-as-a-Service Revenue Climbs 44% Sequentially to $38.2M

Stablecoin-as-a-Service revenue rose 44% sequentially to $38.2 million, and the take rate improved to 7.4%. This segment is becoming a more meaningful, recurring income stream. The sequential growth in stablecoin services stood in contrast to the broader revenue decline, signaling that demand for yield-bearing stablecoin infrastructure remained resilient even as spot crypto markets cooled.

Subscriptions and Staking: Diverging Paths

The Subscriptions and Services segment posted $25.6 million in revenue, edging up 11.3% year-over-year while slipping 34.8% from the previous quarter. Staking revenue fell 66.2% year-over-year to $49.4 million, a direct consequence of lower token prices. The staking decline is a reminder that BitGo’s fee-based income remains tethered to the market value of the assets it custodies and stakes, not just the volume of activity.

Non-Cash Charges Drive the Loss: Bitcoin Mark-to-Market and IPO Stock Comp

The net loss of $60.7 million compared with a loss of $25.7 million a year earlier and a loss of $50 million in Q4 2025. Two non-cash items drove the deterioration.

Bitcoin Treasury Mark-to-Market: A Volatile Drag

BitGo holds Bitcoin on its balance sheet, and the quarterly mark-to-market adjustment flowed through the income statement as a loss. Bitcoin (BTC) profile price swings during the quarter created a non-cash headwind that the company described as “primarily driven by non-cash mark-to-market impacts related to the Company’s Bitcoin treasury.” This accounting treatment means that reported net income will swing with BTC prices regardless of operating performance.

Stock-Based Compensation Spike Tied to NYSE Debut

Derivatives Launch Adds $3B Notional, Reshapes Revenue Recognition

BitGo launched its derivatives offering in January and captured roughly $3 billion in notional volume during the quarter. The new product line changes how the top line should be read.

Net vs. Gross Accounting: Why Sequential Revenue Fell 38.7%

Total revenue fell 38.7% sequentially, a decline that BitGo attributed to softer crypto markets and the shift away from spot trading. The firm provided a critical accounting detail:

“Because derivatives revenue is recognized on a net basis, while spot trading revenue is recognized on a gross basis, reported revenue comparisons to prior periods are not directly comparable.”

This means that a dollar of derivatives notional generates far less reported revenue than a dollar of spot volume. As the derivatives franchise grows, headline revenue may understate the actual economic activity flowing through the platform. Traders and analysts adjusting their models need to separate the mix shift from genuine demand erosion.

Client Base Grows 42%, Cash at $186.6M

Amid the noisy income statement, two balance-sheet metrics stood out. The client base grew 42% year-over-year, and cash and equivalents totaled $186.6 million. The client growth suggests that BitGo’s custody and infrastructure services are gaining adoption even as trading-related revenue fluctuates. The cash position provides a buffer against the mark-to-market volatility of the Bitcoin treasury and funds the build-out of the derivatives platform.

Adjusted EBITDA flipped to a $1.7 million loss from a $3.9 million gain in Q1 2025, reflecting the same non-cash charges that hit net income. The metric strips out some items but still captures the Bitcoin treasury impact, so it does not offer a clean view of operating profitability.

Stock Comp Normalization Expected; Bitcoin Treasury Remains Wildcard

BitGo’s guidance that stock-based compensation will normalize from Q1 levels is the most concrete forward-looking statement in the release. If that normalization materializes, a significant portion of the net loss would reverse, all else equal. The wildcard remains the Bitcoin treasury mark-to-market, which will move with BTC prices each quarter.

For traders building a watchlist decision around BitGo, the setup hinges on two questions. Can the derivatives franchise scale quickly enough to offset the structural decline in spot trading revenue on a net basis? Will the expected drop in stock comp be large enough to swing the bottom line toward breakeven before another leg down in crypto markets resets the treasury mark? The $3 billion in notional volume from a standing start offers an early signal that institutional demand for crypto derivatives is real. The next quarterly filing will show whether that volume is sticky and whether the take rate on derivatives can support a return to positive adjusted EBITDA.