BitGo swung to a net loss in the second quarter even as revenue climbed sharply, the publicly listed digital asset infrastructure firm reported this week. The company posted a $19 million net loss for the quarter despite revenue surging nearly 80% year on year to $4.3 billion.
The loss marks an improvement from earlier in the year. BitGo’s net loss narrowed from $60.7 million in the first quarter, while revenue rose 14.7% quarter over quarter.
Unrealized losses on digital assets drove much of the year on year swing. An $18.8 million unrealized loss on digital assets compares against a $55.8 million unrealized gain in the same period last year.
BitGo chief executive Mike Belshe addressed the shortfall directly on the earnings call. He said Q2 performance fell short of expectations, adding that profitability was hurt by lower margins and an unfavorable revenue mix.
Belshe pointed to two specific pressure points behind the margin squeeze. He cited lower spreads on certain spot transactions along with a smaller contribution from derivatives trading.
Management is responding with cost discipline rather than just watching the numbers. BitGo authorized a share repurchase program of up to $50 million alongside cost cutting measures expected to save about $15 million annually.
Staffing cuts made earlier this year form part of that effort. The company expects expenses to decline in the third quarter following a workforce reduction of about 15% in June.
Markets reacted modestly to the mixed results. BitGo shares fell 1.8% in overnight trading to $4.90 after closing the prior session up 0.6% at $4.99.
The results land amid a broader wave of belt tightening across crypto infrastructure firms this year. Rivals have leaned on similar playbooks, pairing headcount reductions with buyback programs to reassure shareholders.
Revenue growth at that scale still stands out relative to peers, even with the bottom line under pressure. BitGo’s management is betting the cost cuts announced this year will translate into steadier margins by the fourth quarter.
