An $18.8 million unrealized digital asset loss and weaker trading margins pushed BitGo into the red in the second quarter.
BitGo, a publicly listed digital asset infrastructure company, posted a $19 million net loss in the second quarter of 2026 despite revenue surging nearly 80% year over year to $4.3 billion.
BitGo (BTGO) on Wednesday reported that its net loss narrowed from $60.7 million in Q1, while revenue rose 14.7% quarter over quarter. The year-over-year swing to a loss largely reflected an $18.8 million unrealized loss on digital assets, compared with a $55.8 million unrealized gain a year earlier.
BitGo CEO Mike Belshe said during the earnings call that Q2 financial performance fell short of expectations.
“While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix,” Belshe said. He attributed the weaker margins to “lower spreads on certain spot transactions” and a smaller contribution from derivatives.
The company also authorized a share repurchase program of up to $50 million and expects its cost-cutting measures to generate about $15 million in annualized cash savings. BitGo expects expenses to decline in Q3 after cutting its workforce by about 15% in June.
BitGo shares fell 1.8% in overnight trading to $4.90 after closing Wednesday up 0.6% at $4.99, according to Yahoo Finance.
Related: Bitwise cuts 14% of staff while still expecting growth
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