BitGo Reports $3.8B Revenue, $60.7M Loss Amid Bitcoin Drop
BitGo, a leading digital asset infrastructure provider, reported $3.8 billion in Q1 2026 revenue, up 111% year-over-year, but widened its net loss to $60.7 million due to Bitcoin treasury losses and IPO-related expenses. The results highlight the challenges facing crypto firms as markets remain under pressure.
The company noted that falling Bitcoin prices significantly impacted its results. Bitcoin (BTC), which ended Q1 down 22.6% at approximately $68,000, caused $53.7 million in non-cash mark-to-market losses on BitGo’s Bitcoin holdings. Additionally, one-time IPO-related legal and professional fees of $3 million weighed on adjusted EBITDA, which swung to a $1.7 million loss from a $3.9 million gain a year earlier.
Despite the loss, BitGo’s revenue growth was driven by a surge in digital asset trading activity and its stablecoin-as-a-service business, which generated $38.2 million in Q1, up 43.6% year-over-year. The company also launched a derivatives trading product in early 2026, contributing $3 billion in notional volume during the quarter. However, Q1 revenue fell 38.7% from Q4 2025’s $6.2 billion, as clients shifted trading focus from spot to derivatives markets.
Client Growth Remains a Bright Spot
Institutional adoption of BitGo’s platform continues to grow. The firm reported a 42% year-over-year increase in institutional clients, reaching 5,569 by the end of Q1. Users on the platform also grew 7.3% to 1.2 million, underscoring the increasing reliance on BitGo’s infrastructure by hedge funds, fintech firms, and exchanges.
However, not all segments performed equally well. Staking revenue plunged 66.2% year-over-year to $49.4 million, reflecting widespread token price declines during the quarter. BitGo ended Q1 with $186.6 million in cash and 2,449 BTC, valued at approximately $167.1 million at quarter-end prices.
Crypto Sector Faces Broad Q1 Losses
BitGo’s challenges mirror those faced across the crypto industry. Bitcoin’s sharp decline during Q1, driven by rising bond yields, ETF outflows, and macroeconomic concerns, created a difficult operating environment. Coinbase reported a $394.1 million net loss for Q1, while Bitcoin miners like Marathon Digital (MARA) posted staggering losses, including $1.3 billion largely tied to Bitcoin treasury revaluations.
In late January 2026, Bitcoin dipped below $80,000 for the first time in months, and by February, it had fallen under $64,000 amid forced liquidations and weakening investor sentiment. These price movements have put pressure on firms with significant BTC holdings, including BitGo, which absorbed steep treasury losses alongside its IPO-related costs.
Despite these headwinds, BitGo’s client growth trajectory and operational expansion suggest long-term resilience. The shift to derivatives trading and the rising demand for stablecoin infrastructure highlight areas of opportunity, even in a challenging market environment.
BitGo’s stock (BTGO) fell 1.09% to $11.78 in overnight trading following the earnings release. Investors will likely continue to monitor both Bitcoin’s price trajectory and BitGo’s ability to manage costs as it transitions into a public company.