BitGo Reports Q2 Net Loss of $19M as Revenue Climbs 80% to $4.3B
Compressed trading margins and an $18.8 million unrealized loss on digital assets contributed to BitGo's second-quarter deficit.
Despite witnessing revenue growth of nearly 80% year over year to reach $4.3 billion, BitGo, a publicly traded digital asset infrastructure firm, recorded a net loss of $19 million during the second quarter of 2026.
On Wednesday, BitGo (BTGO) disclosed that its net loss decreased from the $60.7 million deficit posted in Q1, as revenue climbed 14.7% on a sequential basis. The year-over-year shift to negative territory was primarily driven by an $18.8 million unrealized loss on digital assets, contrasting sharply with the $55.8 million unrealized gain recorded in the same period one year prior.
During the earnings call, BitGo CEO Mike Belshe acknowledged that the company's Q2 financial results did not meet anticipated targets.
While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix.
Mike Belshe, BitGo CEO
Belshe pointed to "lower spreads on certain spot transactions" and reduced contributions from derivatives as the primary factors behind the compressed margins.
Additionally, the company announced approval of a share repurchase program valued at up to $50 million and anticipates that its expense reduction initiatives will yield approximately $15 million in annualized cash savings. Following a workforce reduction of roughly 15% implemented in June, BitGo projects that expenses will decrease in Q3.
According to Yahoo Finance, BitGo shares declined 1.8% in overnight trading to reach $4.90 after finishing Wednesday's regular session up 0.6% at $4.99.