BitGo posts $19M Q2 loss despite 80% revenue surge to $4.3B

BitGo, a publicly traded digital asset infrastructure firm, reported a $19 million net loss for the second quarter of 2026, despite revenue increasing by nearly 80% year-on-year to $4.3 billion. The net loss marked a shift from a $60.7 million loss in Q1, while revenue grew by 14.7% quarter-over-quarter. The year-over-year loss was primarily driven by an $18.8 million unrealized loss on digital assets, compared to a $55.8 million unrealized gain a year ago.

BitGo's CEO, Mike Belshe, admitted during the earnings call that the company's financial performance in Q2 did not meet expectations. He cited lower margins and an unfavorable revenue mix as the main factors contributing to the weaker profitability. Belshe attributed the lower margins to reduced spreads on certain spot transactions and a smaller contribution from derivatives.

In response to the financial results, BitGo authorized a share repurchase program of up to $50 million and expects cost-cutting measures to generate about $15 million in annualized cash savings. The company expects expenses to decrease in the third quarter, following a workforce reduction of around 15% in June. BitGo shares fell 1.8% in overnight trading, closing at $4.90 after reaching $4.99 earlier in the day, according to Yahoo Finance.