Key Takeaways
- Bitgo’s Q2 revenue jumped 80% to $4.3B, but it still posted a $19M net loss.
- Bitgo’s $65.2B in assets and 148% growth in stablecoin assets show rising institutional crypto demand.
- Bitgo targets $15M in annual savings and a $50M buyback as it pushes AI and quantum security.
Bitgo Posts $19M Loss Despite $4.3B in Q2 Revenue
Bitgo reported a sharp increase in second-quarter revenue as institutional demand for digital-asset infrastructure continued to grow, though weaker trading margins and crypto mark-to-market losses kept the company in the red.
Revenue rose 79.6% from a year earlier to $4.33 billion and increased 14.7% from the first quarter. Most came from digital asset sales, which generated about $4.2 billion. That headline figure comes with thin economics. Direct costs totaled $4.29 billion, leaving the digital asset sales business with a quarterly margin of roughly $7.1 million.
Bitgo posted a $19 million net loss, compared with a $38.3 million profit a year earlier. Results included an $18.8 million unrealized loss on digital assets, versus a $55.8 million unrealized gain in the prior-year period.
Institutional Assets and Stablecoins Keep Growing
Bitgo’s client count rose 26% year over year to 5,833. Normalized assets on the platform increased 31% to $65.2 billion, while normalized assets staked climbed 36% to $11.9 billion. Staking revenue reached $64.7 million, up 31% from the previous quarter, although lower take rates pressured profitability.
Stablecoin-as-a-Service was a stronger growth area. Revenue jumped 148% from a year earlier to $38.8 million as reserve balances expanded and new programs contributed fixed fees.
CEO Mike Belshe said demand for secure, regulated infrastructure should grow as “digital assets, stablecoins, and tokenized financial markets adoption accelerates.”
Bitgo also highlighted its role in DTCC’s post-quarter demonstration of tokenized securities, as well as its work supporting Canton Network and Figure.
AI, Quantum Security and Buybacks Shape Next Phase
The company is tightening spending while investing in newer technologies.
Bitgo said it expanded its use of artificial intelligence across engineering and operations to speed software development, automate manual work and improve efficiency. Cost-cutting measures are expected to generate about $15 million in annualized cash savings.
The company also introduced quantum-risk management capabilities for bitcoin wallets, positioning security as a growing area of differentiation for institutional custody.
Bitgo ended June with $159 million in cash, no corporate-level debt, and 2,523 company-owned bitcoin valued at about $147.7 million. It also authorized a share repurchase program of up to $50 million.
The next challenge is turning platform growth into wider margins. Bitgo is adding clients and assets quickly, but its second-quarter results show that scale alone does not yet guarantee stronger earnings.
