BitGo Posts $19M Net Loss in Q2 Despite 80% Revenue Surge to $4.3 Billion

BitGo Holdings (BTGO) posted a $19 million net loss for the second quarter even as revenue climbed 79.6% year-over-year to $4.33 billion. An $18.8 million unrealized digital-asset loss and thinner trading margins erased the top-line gain.

The loss, versus $38.3 million in net income a year earlier, shows how exposed even fast-growing crypto custody infrastructure remains to market volatility. Revenue nearly doubled. Normalized assets on platform rose 31% to $65.2 billion. The quarter still closed in the red.

One bright spot: the net loss narrowed from $60.7 million in the first quarter.

CEO Mike Belshe conceded the gap during the earnings call. “While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix,” Belshe said, attributing the margin weakness to “lower spreads on certain spot transactions” and a smaller contribution from derivatives.

The year-over-year swing, BitGo said, “primarily reflected” an $18.8 million unrealized loss on its digital-asset holdings in Q2, compared with a $55.8 million unrealized gain in the same quarter of 2025. Adjusted EBITDA flipped to a $4.2 million loss from a $3 million gain a year earlier. The company cited higher digital-asset sales and growth in its stablecoin-as-a-service business as the main revenue drivers.

That reading leaves out the quarter’s expiry flows. The unrealized-loss line is a mark-to-market accounting figure on BitGo’s own token holdings. It is not a realized cash outflow. The figure moved against the firm as digital-asset prices pulled back. The underlying custody and trading business still expanded: client count grew 26%, and revenue rose 14.7% from the first quarter.

BitGo entered the quarter mid-restructuring. In June the firm cut staff by 15%, citing market changes, and it expects the reductions to generate about $15 million in annualized cash savings. Management said expenses should decline in the third quarter as the layoffs take full effect. Belshe said the company had “streamlined” its cost structure during Q2.

CFO Ed Reginelli, who is stepping down effective Sept. 15 per an SEC filing, framed the quarter as transitional. “We have the financial flexibility to invest behind our highest-priority opportunities while maintaining discipline around costs and capital allocation,” Reginelli said in the Q2 disclosure. “As we enter the second half, our focus is translating continued business growth into stronger earnings, disciplined capital allocation, and more durable financial performance.”

The balance sheet holds $159 million in cash and $147.7 million in bitcoin. BitGo’s board authorized a $50 million share repurchase program.

The market took the print in stride. BTGO shares fell 1.8% in overnight trading to $4.90 after closing up 0.6% at $4.99 on Wednesday, according to Yahoo Finance. Traders, as ever, disagree on whether the margin compression is cyclical or structural.