BTGO · BitGo Holdings, Inc.

BitGo's Q1 2026 results reflect a company navigating a challenging crypto market while demonstrating strong underlying business momentum. Total revenue of $3.8 billion surged 112.6% year-over-year, driven by higher digital asset sales activity and a growing contribution from stablecoin-as-a-service. However, revenue declined 38.7% sequentially, partly due to a shift in client activity from spot trading to derivatives following the launch of BitGo's derivatives offering in Q1. Because derivatives revenue is recognized on a net basis versus gross for spot trading, reported revenue comparisons are distorted. Management emphasized that underlying platform economics remained resilient, with margins in digital asset sales improving to 32 basis points from 20 bps a year ago and 24 bps in Q4 2025. Net loss widened to $60.7 million from $25.7 million in Q1 2025, primarily due to non-cash mark-to-market losses on the company's Bitcoin treasury (2,449 Bitcoin valued at $167.1 million) and elevated IPO-related stock-based compensation. Adjusted EBITDA turned negative at -$1.7 million versus a positive $3.9 million a year ago, reflecting weaker market conditions, $3.0 million in one-time IPO-related legal and professional costs, and continued investment in product and go-to-market capabilities. Key performance indicators showed robust client growth: clients increased 42% year-over-year to 5,569, and normalized assets on platform grew 29.4% year-over-year and 10.1% sequentially, indicating strong organic asset growth excluding price effects. Staking revenue declined 66.2% year-over-year due to lower token prices, but normalized staked balances grew 20.8% year-over-year and 27.2% sequentially, with take rates improving to 16.1% from 12.5% a year ago. Stablecoin-as-a-service revenue grew 43.6% sequentially to $38.2 million, with take rate improving to 7.4% from 5.5% in Q4 2025, supported by client adoption and new partnerships. Management expressed confidence in BitGo's positioning for institutional adoption of digital assets, stablecoins, and tokenized assets. The company ended the quarter with $186.6 million in cash and equivalents.