BitGo reports expanded Q1 deficit as revenue surges past double
The digital asset company BitGo disclosed a Q1 2026 net deficit of $60.7 million driven by Bitcoin valuation drops and public offering expenses, while revenue climbed to $3.8 billion and institutional customer base expanded 42% compared to the prior year.
The cryptocurrency infrastructure provider BitGo disclosed an enlarged first-quarter net deficit as mark-to-market writedowns on its Bitcoin holdings and expenses associated with its public offering overshadowed robust customer expansion and a significant year-over-year surge in total revenue.
Total revenue during the three-month period ending March 31 reached $3.8 billion, climbing from $1.8 billion in the same quarter of the previous year, propelled by increased digital asset transaction volumes and expanding revenue streams from its stablecoin operations, according to Wednesday's company announcement. Quarterly revenue declined 38.7% sequentially from the $6.2 billion recorded in Q4 2025, attributable in part to customers transitioning their trading activity from spot markets to derivatives, a newly launched product at the quarter's beginning that produced approximately $3 billion in notional trading volume.
Nevertheless, the company's net deficit expanded to $60.7 million compared to $25.7 million during Q1 2025, impacted by a non-cash writedown of $53.7 million connected to diminishing valuations of BitGo's Bitcoin treasury holdings, along with equity-based compensation expenses stemming from the company's recent public market debut. The firm indicated that equity compensation expenditures should stabilize at more typical levels in future periods.
The company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) flipped to a deficit of $1.7 million versus a positive $3.9 million recorded in the year-ago period, influenced partially by one-time expenditures totaling $3 million for legal and professional services associated with the IPO process.
BitGo client base surges 42%
Regarding platform metrics, the total number of clients increased 42% on a year-over-year basis to reach 5,569. This customer base comprises institutional entities including hedge funds, exchanges, fintech companies and other businesses that integrate with BitGo's infrastructure solutions. The platform's total user count also expanded to 1.2 million, representing a 7.3% increase year-over-year.
Revenue generated from stablecoin-as-a-service offerings surged 43.6% to reach $38.2 million, whereas staking-related revenue plummeted 66.2% to $49.4 million reflecting decreased cryptocurrency token valuations.
At the conclusion of the quarter, BitGo maintained $186.6 million in cash reserves and possessed 2,449 Bitcoin with an estimated market value of approximately $167.1 million.
BTGO stock declined 1.09% during after-hours trading to settle at $11.78 following the quarterly earnings disclosure, based on data from Yahoo! Finance.
Crypto companies post widening losses in Q1
Multiple cryptocurrency-focused enterprises reported expanding deficits during the first quarter of 2026 coinciding with broader market deterioration. Coinbase flipped to a $394.1 million net deficit, falling short of revenue projections at $1.41 billion versus analyst expectations of $1.5 billion. Exodus Movement witnessed its losses more than double to $32.1 million as quarterly revenue contracted 36.8% and the active user base declined.
Bitcoin mining operations, including Riot Platforms, Core Scientific, CleanSpark and TeraWulf, universally reported widening quarterly deficits in Q1 2026, with MARA leading the sector at a $1.3 billion net loss, approximately $1 billion of which originated from non-cash mark-to-market valuation adjustments on the company's Bitcoin treasury holdings.