BitGo's Q2 net loss narrowed to $19M as revenue surged 79.6% to $4.33B, but Digital Asset Sales margin halved. Management targets Q3 breakeven.
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BitGo Holdings posted a net loss of $19.0 million for the second quarter of 2026, narrowing from a $60.7 million loss in the first quarter and reversing a $38.3 million profit a year earlier. Revenue rose 79.6% year over year to $4.33 billion, the company said in an earnings filing with the Securities and Exchange Commission on Aug. 12.
Q1’s loss came mostly from a $53.7 million paper loss on bitcoin holdings and IPO costs. Q2’s loss traces to something inside the business. The 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 Q1 and from 19 basis points a year earlier. BitGo executives on the earnings call tied the drop to two shifts in mix. Derivatives volume, which carries fatter margins than spot trading, fell to roughly $1 billion from about $3 billion in the first quarter. A large staking client was also onboarded at lower contractual rates than the rest of the book. An $18.8 million unrealized loss on BitGo’s digital assets weighed on the quarter, compared with a $55.8 million unrealized gain in the same period last year.
Underneath the margin pressure, the platform kept expanding. Clients rose 26.2% year over year to 5,833. Normalized assets on platform grew 31.4% to $65.2 billion. 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.”
BitGo cut about 15% of its workforce in late June, a move it attributed to a pivot toward AI infrastructure and stablecoins. On the call, it cited roughly $15 million in annualized cost savings from that reduction and cloud infrastructure changes. The 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.
Management targets getting “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. The target depends on the derivatives and staking mix bouncing back, not on bitcoin’s price direction.
Analyst sentiment stayed bullish through both loss quarters. Ten 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. The same week BitGo reported, BNY Mellon reported record quarterly revenue and raised its outlook while adding crypto staking to its own custody platform.
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