BitGo revenue surges 80% to $4.3bn but digital asset writedown tips Q2 into loss
The crypto infrastructure firm's stablecoin and trading businesses drove record top-line growth, yet a swing in digital asset valuations erased profitability and coincided with its CFO's imminent departure.
BitGo Holdings reported second-quarter revenue of $4.33 billion on Wednesday, a 79.6% increase from a year earlier, as higher digital asset sales and its stablecoin-as-a-service offering propelled the custodian's top line. The figure also marked a 14.7% sequential gain.
The growth, however, did not reach the bottom line. BitGo swung to a net loss of $19 million, or $0.16 per share, from net income of $38.3 million in the second quarter of 2025. The company attributed the reversal to an $18.8 million unrealized loss on its digital asset holdings, against a $55.8 million unrealized gain in the prior-year period. Adjusted EBITDA came in at negative $4.2 million, compared with a $3 million gain a year ago.
Loss narrowing, platform scaling
The trajectory is improving. The Q2 loss compares with a $60.7 million deficit in the first quarter, suggesting the valuation drag is easing. Operational indicators also point to a widening franchise: client numbers rose 26% year-over-year, and normalized assets on BitGo's platform climbed 31% to $65.2 billion.
The balance sheet shows $159 million in cash and $147.7 million in bitcoin. The board has authorized a $50 million share repurchase programme, a signal management intends to defend the stock while reinvesting in the business.
Cost discipline and leadership change
Chief Executive Mike Belshe said the company "streamlined" its cost structure during the quarter. In June, BitGo cut staff by 15%, citing shifts in the broader crypto ecosystem. The firm also said it expanded artificial intelligence across engineering and operations to speed software development and automate manual processes.
The results carry extra weight given an impending leadership transition. Chief Financial Officer Ed Reginelli will step down effective 15 September. Before departing, he struck a forward-looking note: "We have the financial flexibility to invest behind our highest-priority opportunities while maintaining discipline around costs and capital allocation." He added that the second-half focus is "translating continued business growth into stronger earnings, disciplined capital allocation, and more durable financial performance."
For investors, the quarter underscores a structural feature of crypto infrastructure businesses: operating leverage can build rapidly—revenue nearly doubled in a year—yet mark-to-market swings on treasury holdings can still tip reported earnings from profit to loss. The test for BitGo's next CFO will be whether stablecoin services and platform fees can outpace that volatility.
