Key facts
- BitGo reported a $19 million net loss in the second quarter of 2026.
- Revenue increased 80% year-over-year to $4.3 billion.
- The loss was largely due to an $18.8 million unrealized loss on digital assets.
- Trading margins were impacted by lower spreads on spot transactions and reduced derivatives contribution.
- The company authorized a share repurchase program of up to $50 million.
- BitGo cut its workforce by approximately 15% in June.
BitGo, a digital asset infrastructure company, reported a $19 million net loss for the second quarter of 2026, despite a significant 80% year-over-year surge in revenue to $4.3 billion. The company's net loss narrowed from $60.7 million in the first quarter, with revenue increasing by 14.7% sequentially.
The swing to a loss compared to the previous year was primarily driven by an $18.8 million unrealized loss on digital assets, a reversal from a $55.8 million unrealized gain in the same period last year. BitGo CEO Mike Belshe stated during the earnings call that financial performance fell short of expectations, attributing the profitability impact to lower margins and an unfavorable revenue mix. He specifically mentioned weaker margins due 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. The company also anticipates that its cost-cutting measures, including a workforce reduction of approximately 15% in June, will generate about $15 million in annualized cash savings. BitGo expects expenses to decrease in the third quarter as a result of these initiatives.
Following the earnings report, BitGo shares experienced a slight decline, falling 1.8% in overnight trading to $4.90 after closing Wednesday up 0.6% at $4.99.