BitGo made $4.3 billion in revenue last quarter, but direct costs swallowed 99.8% of it

BitGo’s second-quarter earnings showed $4.329 billion of revenue, but almost all of the sales generated by its largest business line flowed back out as transaction costs.

Revenue increased 79.6% from a year earlier, according to BitGo’s second-quarter earnings release. Yet the headline number can obscure the underlying economics: Digital Asset Sales generated $4.198 billion of revenue against $4.190 billion of direct costs.

That left a spread of $7.1 million, or 17 basis points of Digital Asset Sales revenue. The measure applies to that segment, not to BitGo’s consolidated margin.

BitGo generally records Digital Asset Sales gross when it acts as principal, according to its quarterly filing. Direct costs therefore offset 99.83% of the segment’s revenue in the quarter, making that gross-presented component economically different from net-style software revenue.

Related Reading

Crypto exchange IPOs are back, but Bitcoin still controls the window

Public investors are testing whether crypto exchanges can earn through a weak Bitcoin cycle, rather than simply list into a strong one.

May 2, 2026
·
Andjela Radmilac

The distinction mattered below the top line. BitGo recorded a $17.4 million operating loss and a $19.0 million net loss. The net result included an $18.8 million unrealized loss on company-owned digital assets, partly offset by a $5.6 million disposal gain. But the weakness was not only a Bitcoin remeasurement story: BitGo’s company-defined adjusted EBITDA was still negative at $4.2 million.

Management also announced cost actions expected to produce about $15 million of annualized cash savings. Separately, BitGo approved a reduction in force in June, recorded $1.3 million in restructuring charges and said that plan was substantially complete. The savings remain an expectation rather than a realized result.

The company also faces a finance leadership change. Edward Reginelli notified the board on Aug. 10 that he would resign as chief financial officer effective Sept. 15, according to a separate filing. BitGo said the decision did not result from a disagreement and that Reginelli would support the transition in an advisory role while it searches for a successor.

A June authorization allows BitGo to repurchase up to $50 million of shares, but it carries no purchase obligation. No shares were repurchased under the program during the three months ended June 30.

Related Reading

Smart money has abandoned high-risk tokens for this specific safe haven, explosive IPO surge proves

Public filings will force disclosures on exploit exposure, liability risk, and client concentration that private markets didn’t demand.

Jan 24, 2026
·
Gino Matos

BitGo earnings now depend on normalized balances

Assets on Platform, measured as the median of daily client fiat and digital asset balances, were $65.2 billion. That was down 27.8% on the reported year-over-year measure but up 31.4% after BitGo repriced prior-period digital assets using current-quarter median prices.

The normalized figure indicates that underlying balances expanded even though asset-price changes pulled down the reported comparison. The next test is whether that growth in normalized balances can produce wider retained margins rather than simply more gross transaction volume.

Related Reading

MiCA deadline likely to shift smaller crypto apps into licensed custody rails

BitGo’s Bielik deal shows how MiCA deadline pressure can preserve user access while shifting control to licensed custody rails.

Jun 22, 2026
·
Liam 'Akiba' Wright

For investors, the durable signal in BitGo earnings will not be another multibillion-dollar sales figure. It will be evidence that BitGo can keep more of each transaction dollar and turn its normalized asset growth into positive operating earnings.

The post BitGo made $4.3 billion in revenue last quarter, but direct costs swallowed 99.8% of it appeared first on CryptoSlate.