BitGo's Q2 revenue surged 79.6% to $4.33B, driven by Digital Asset Sales. The board authorized a $50M buyback even as the company reported a $19M net loss. Staking revenue fell 28.8%.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
BitGo Holdings (BTGO) shares edged up 0.20% in pre-market trading to $5.00 after the digital asset custody platform reported second-quarter revenue of $4.33 billion, a 79.6% year-over-year jump from $2.41 billion. The company also authorized a $50 million share repurchase program. The stock had closed the prior session at $4.99, up 0.60%.
Revenue climbed 14.7% sequentially from the first quarter's $3.77 billion. The Digital Asset Sales division drove the bulk of the top line, generating $4.20 billion in quarterly revenue – an 84.3% annual gain and 14.7% sequential improvement. Direct expenses for the segment totaled $4.19 billion, leaving roughly $7.1 million in segment margin, or 17 basis points. Compression in trading spreads and shifts in derivatives activity shaped that margin profile, the company said.
The Stablecoin-as-a-Service line posted $38.8 million in revenue, up 148% year over year. Subscriptions and Services contributed $27.5 million, an 8.5% annual increase. Staking revenue came in at $64.7 million, down 28.8% from the same period last year.
BitGo recorded a net loss of $19 million for the quarter, compared with net income of $38.3 million a year earlier. The loss narrowed from the first quarter's $60.7 million deficit. Unrealized losses of $18.8 million on digital asset holdings weighed on the bottom line. Adjusted EBITDA was negative $4.2 million versus positive $3 million in the year-ago quarter. Loss per share on both a basic and diluted basis was $0.16.
The company held $159 million in cash and equivalents at quarter-end. Its treasury included 2,523 Bitcoin valued at roughly $147.7 million. BitGo carries no corporate debt.
Platform metrics showed growth. Normalized assets under management rose 31.4% year over year to $65.2 billion. Staked assets increased 36.1% annually to $11.9 billion. The institutional client base expanded 26.2% to 5,833 clients.
The board approved a $50 million buyback program alongside operational restructuring expected to generate roughly $15 million in annualized cash savings. The company has deployed AI tools across engineering and operational workflows, it said.
BitGo recently rolled out quantum-resistant security features for Bitcoin custody. After the quarter closed, it contributed regulated custody infrastructure to DTCC's tokenized securities pilot program.
BitGo is a privately held company and does not disclose financial results on a regulated exchange. The figures above come from its internal reporting.
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