BitGo Holdings reported a sharp increase in second-quarter revenue but returned to a net loss as unrealized declines in its digital asset holdings reversed a substantial accounting gain recorded a year earlier. The company generated $4.33 billion in revenue for the quarter, up 79.6% from $2.41 billion in the second quarter of 2025 and 14.7% from the first quarter of 2026, according to its disclosure.
The firm posted a net loss of $19 million, or $0.16 per share, compared with net income of $38.3 million in the year-earlier quarter. Its loss narrowed from $60.7 million in the first quarter, suggesting that operating results improved sequentially even as asset-price movements continued to weigh on reported earnings.
BitGo attributed the year-over-year swing largely to changes in the value of digital assets it holds. The company recorded an $18.8 million unrealized loss on those assets in the second quarter, compared with a $55.8 million unrealized gain in the same period of 2025. Such gains and losses affect reported income without necessarily reflecting a sale of the underlying assets, but they can produce large changes in quarterly profit for companies that maintain sizable cryptocurrency reserves.
Stablecoin services help lift revenue
The company said higher digital asset sales and expansion of its stablecoin-as-a-service business drove the revenue increase. Stablecoin-as-a-service generally provides the infrastructure that businesses need to issue, manage, custody, or settle transactions involving tokens designed to track traditional currencies.
That business line places BitGo in a part of the digital asset market where activity can be tied more closely to payments, settlement and treasury operations than to directional cryptocurrency prices. The disclosure did not provide a revenue breakdown for individual business segments, so the relative contribution of stablecoin services and digital asset sales was not specified.
BitGo also reported growth in its customer base and assets on the platform. The number of clients increased 26% from a year earlier, while normalized assets on the platform rose 31% to $65.2 billion. The figure indicates that the company’s custody and related services were handling a larger pool of client assets, although it does not mean BitGo owns those assets.
The growth in platform assets may strengthen fee-generating opportunities across custody, trading, wallet infrastructure and settlement services. At the same time, the quarter illustrates that rapid top-line expansion does not automatically translate into stable profitability when a company’s own balance sheet includes volatile digital assets.
Treasury exposure affected quarterly earnings
BitGo listed $159 million in cash and $147.7 million in bitcoin holdings. The bitcoin position gives the company direct exposure to price movements in the asset, which can benefit earnings during rallies but can also create unrealized losses during declines.
The contrast between the $55.8 million unrealized gain in the second quarter of 2025 and this year’s $18.8 million unrealized loss accounts for a substantial portion of the $57.3 million change in net income between the two periods. The comparison shows how treasury holdings can obscure the underlying progress of a crypto services company: revenue rose by nearly four-fifths, client and platform metrics improved, yet the headline profit result deteriorated.
Adjusted EBITDA, a measure that excludes items such as interest, taxes, depreciation and amortization, was a loss of $4.2 million. BitGo recorded adjusted EBITDA of $3 million in the second quarter of 2025. The measure points to pressure beyond the unrealized asset decline, though the sequential narrowing of the net loss provides a more constructive comparison with the first quarter.
Cost actions and finance leadership change
BitGo’s second-quarter disclosure followed a June announcement that it had reduced its workforce by 15%. The company said it is also expanding artificial intelligence use across engineering and operations, including software development and the automation of manual processes.
Those measures indicate a focus on lowering the cost required to support a growing service platform. Automation could reduce processing time in areas such as internal operations, engineering workflows and routine administrative work, though the company did not quantify expected savings or provide a timetable for the initiatives.
The firm also said Chief Financial Officer Ed Reginelli will step down effective Sept. 15. A finance leadership transition during a period of workforce reductions, adjusted EBITDA losses and balance-sheet exposure to bitcoin puts added attention on how BitGo manages expenses, capital allocation and financial reporting in the coming quarters.
BitGo authorized a $50 million share repurchase program as well. Repurchase authorizations give a company the ability, rather than an obligation, to buy back shares. The disclosure did not state when purchases might begin or how much of the authorization the company expects to use.
Growth leaves profitability questions unresolved
The quarter presents two competing signals. BitGo’s revenue, client count and normalized assets all moved higher, supporting the company’s claim that demand for its digital asset infrastructure and stablecoin services is expanding. Its net loss and negative adjusted EBITDA show that growth has yet to consistently offset the effects of digital asset valuation changes and operating costs.
For a custody and infrastructure provider, the stablecoin business could offer a more recurring source of revenue than balance-sheet gains from cryptocurrency holdings. The next results will show whether staff reductions, greater automation and service growth can improve operating profitability while reducing the degree to which quarterly earnings are shaped by bitcoin price fluctuations.
Explore how growing stablecoin adoption may shape future revenues in 2026—see our outlook in this stablecoin market analysis.
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