BitGo's $4.33B Revenue Masks $19M Loss, CFO Exit

BitGo Holdings reported $4.33 billion in second quarter revenue on Aug. 12, up 79.6% from a year earlier, driven by digital asset sales and its stablecoin business. The company also recorded a $19 million net loss, compared with $38.3 million in net income in Q2 2025, according to its release. The loss narrowed from $60.7 million in the first quarter.

The headline revenue number reflects the gross reporting of digital asset sales, which generated $4.20 billion and carried $4.19 billion in direct costs. That left about $7.1 million of margin and a trading margin of 17 basis points, down from 32 basis points in Q1. BitGo cited lower spreads on spot trades and a smaller derivatives mix.

The stablecoin-as-a-service line posted a 148% revenue jump to $38.8 million, with $35.7 million in sponsor fees and an 8% take rate. Staking revenue fell 28.8% to $64.7 million, while subscriptions and services revenue rose 8.5% to $27.5 million. The mix shift toward higher-margin stablecoin services is a key trend for the custody sector, where volume-based revenue from trading is often thin.

Client count rose 26.2% to 5,833. Assets on the platform were $65.2 billion, down 27.8% on an unadjusted basis, but up 31.4% when normalized using current quarter median digital asset prices. Normalized assets staked rose 36.1% to $11.9 billion. The firm has expanded beyond custody; in July, Gate US joined BitGo's off-exchange settlement network, letting institutions trade while keeping assets at BitGo Bank.

CFO Ed Reginelli informed the board Aug. 10 he will resign effective Sept. 15. BitGo said the departure was not related to a disagreement over operations, policies or practices. The company has started a formal successor search, and Reginelli will remain in an advisory role during the transition.

BitGo cut nearly 15% of its workforce in June, incurring $1.3 million in restructuring costs. Management expects about $9 million in annualized savings from the reduction starting in Q3, and roughly $15 million total from broader cost actions. Those figures remain company projections.

A new filing shows previously disclosed material weaknesses in financial reporting controls remain unresolved. Management cited issues with IT access, manual reviews, segregation of duties and finance staffing. BitGo said the problems have not caused a material misstatement in prior financial statements and that remediation will continue through 2026.

The year-over-year earnings swing was partly driven by BitGo's own digital asset holdings. It booked an $18.8 million unrealized loss in Q2, compared with a $55.8 million unrealized gain a year earlier. Adjusted EBITDA was negative $4.2 million, versus positive $3 million in Q2 2025 and a $1.7 million loss in Q1.

For Q3, management expects reported revenue to be "relatively flat versus Q2 performance" in digital asset sales, with broadly stable staking, sequential growth in subscriptions and services, modest stablecoin growth and lower operating expenses. The outlook assumes digital asset prices and market activity remain near recent levels.

BitGo finished June with $159 million in cash, 2,523 company-owned Bitcoin valued at $147.7 million and no corporate debt. It has a $50 million share repurchase authorization, but no shares had been bought under the program by June 30.

BTGO closed Aug. 12 at $4.99, up about 0.6% during the regular session. The earnings report arrived after the close, so Thursday will be the first full trading session with the results priced in.