Bitgo Revenue Hits $4.3B, Up 80%, as Stablecoin Business Surges

Bitgo reported $4.3 billion in second-quarter revenue, up nearly 80% from a year earlier, driven by a surge in stablecoin-related services and digital asset trading volume. The company still posted a $19 million net loss, squeezed by mark-to-market losses on its crypto holdings and thinning margins on its core sales business.

Revenue rose 79.6% from a year earlier to $4.33 billion and increased 14.7% from the first quarter, the company said. The bulk came from digital asset sales, which generated about $4.2 billion. That headline figure carries thin economics. Direct costs totaled $4.29 billion, leaving the digital asset sales business with a quarterly gross margin of roughly $7.1 million.

Bitgo posted a $19 million net loss, compared with a $38.3 million profit a year earlier. The swing reflected an $18.8 million unrealized loss on digital assets, versus a $55.8 million unrealized gain in the prior-year period.

Client count rose 26% year over year to 5,833. Normalized assets on the platform increased 31% to $65.2 billion, while normalized assets staked climbed 36% to $11.9 billion. Staking revenue reached $64.7 million, up 31% from the previous quarter. Lower take rates pressured profitability on that line, the company said.

Stablecoin-as-a-Service was the standout growth driver. Revenue jumped 148% from a year earlier to $38.8 million as reserve balances expanded and new programs contributed fixed fees.