BitGo Posts $19M Q2 Loss as $18.8M Unrealized Crypto Hit Offsets 80% Revenue Jump to $4.3B

BitGo (BTGO) reported second-quarter revenue of $4.3 billion, up roughly 80% year-on-year, but still booked a net loss of $19 million after an $18.8 million unrealized hit on its digital asset holdings dragged the bottom line into negative territory. The result compares with net income of $38.3 million in the same quarter a year ago, when the company’s crypto book benefited from a $55.8 million unrealized gain instead of a loss.

The swing from profit to loss illustrates how sensitive BitGo’s earnings remain to short-term moves in digital asset prices, even as its underlying custody and trading business keeps scaling. Revenue climbed 14.7% quarter-over-quarter, and the $19 million Q2 loss actually marks an improvement from the $60.7 million net loss BitGo posted in the first quarter of 2026.

Thinner Margins, Not Just Paper Losses

Beyond the unrealized loss, BitGo pointed to compressed trading margins as a second drag on profitability. CEO Mike Belshe told analysts on the earnings call that Q2 results fell short of internal expectations.

“While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix,” Belshe said, attributing the squeeze to “lower spreads on certain spot transactions” and a smaller contribution from derivatives trading.

In other words, BitGo is moving more volume — enough to nearly double revenue year-on-year — but is capturing a smaller slice of each transaction, a dynamic familiar to other crypto infrastructure firms navigating a more competitive spot and derivatives market.

Buybacks and Cost Cuts

To shore up investor confidence, BitGo’s board authorized a share repurchase program of up to $50 million. The company also expects roughly $15 million in annualized cash savings from cost-cutting measures already underway, following a workforce reduction of about 15% in June.

Management said it expects overall expenses to decline in the third quarter as those cuts take full effect, signaling an attempt to rebuild margin even if trading spreads remain compressed.

Shares Slip After the Print

BitGo shares closed Wednesday up 0.6% at $4.99 but slipped 1.8% in overnight trading to $4.90 following the earnings release, according to data cited by Cointelegraph. The muted reaction suggests investors are weighing the strong top-line growth against the recurring volatility in BitGo’s unrealized crypto gains and losses, a line item that has now swung by more than $70 million year-on-year.

For holders of BitGo stock and clients relying on its custody and trading infrastructure, the quarter underscores a broader theme playing out across listed crypto-adjacent companies: revenue growth alone is no longer enough to satisfy markets when margins and mark-to-market exposure remain under pressure.

Read more: Bitwise Cuts Headcount 14% to ~155 Staff as Crypto Market Slumps

Sources

• cointelegraph.com
• theblock.co