BitGo more than doubled its first-quarter revenue to $3.8 billion as institutional demand for crypto trading and stablecoin services accelerated. Still, rising costs and softer digital-asset prices widened the company’s losses during the period.
The strong growth failed to offset mounting expenses tied to BitGo’s January IPO, Bitcoin treasury losses, and expansion efforts. The company reported a net loss of $60.7 million during the quarter, compared with a $25.7 million loss a year earlier. However, Adjusted EBITDA loss was just $1.7 million — versus $3.9 million gain in Q1 2025 and $12.1 million gain in Q4 2025; meaning most of the GAAP loss reflected non-cash Bitcoin mark-to-market adjustments and elevated IPO-related stock-based compensation rather than operating deterioration.
BitGo’s January 2026 debut on the NYSE was structurally significant beyond just being an IPO. On the same day as its listing (January 22, 2026), BitGo received final approval from the Office of the Comptroller of the Currency (OCC) to operate as a national trust bank — making it the first publicly traded, federally chartered digital asset infrastructure company in the United States. Shares priced at $18, raising approximately $212.8 million at a roughly $2.1 billion valuation. The stock has traded below the IPO price for much of Q1.
Meanwhile, BitGo accelerated its push into derivatives trading and stablecoin infrastructure as competition for institutional crypto clients intensified.
Derivatives and stablecoins drive expansion
BitGo pushed deeper into derivatives trading during the first quarter as institutional clients searched for more advanced crypto products. The company launched its derivatives platform early in the quarter and processed nearly $3 billion in notional trading volume. As a result, more customers shifted away from traditional spot trading.
That transition changed how BitGo reported revenue. Chief Financial Officer Ed Reginelli said derivatives revenue appears smaller on paper because accounting rules treat it differently from spot trading revenue. “Because derivatives revenue is recognized on a net basis, while spot trading revenue is recognized on a gross basis, reported revenue comparisons to prior periods are not directly comparable.”
Even with weaker crypto market conditions, BitGo’s core trading business remained active. Digital asset sales reached $3.66 billion during the quarter. However, quarterly revenue still fell nearly 39% from the previous quarter as trading activity slowed across the broader crypto market. Despite that decline, BitGo improved trading margins to 32 basis points from 20 basis points a year earlier — and from 24 basis points in Q4 2025, reflecting the higher-margin derivatives mix.
Meanwhile, BitGo continued expanding its stablecoin infrastructure business. Revenue from its Stablecoin-as-a-Service division jumped 43.6% from the previous quarter, helped by new partnerships and rising client adoption. The company also rolled out BitGo Mint, a platform that allows institutional customers to issue, redeem, and manage stablecoins more efficiently.
Chief Executive Officer Mike Belshe said institutional demand for digital asset infrastructure continues growing despite market volatility. “As institutional adoption of digital assets continues to accelerate, we are investing to ensure BitGo not only scales its core infrastructure.”
Institutional growth offsets market weakness
BitGo continued expanding its institutional business during the quarter through new partnerships and trading initiatives. The company added deals with firms including 21Shares, SoFi, Stable Sea, and The Better Money Company as competition for institutional crypto clients intensified.
The crypto custodian also partnered with Susquehanna Crypto to support prediction market trading for hedge funds, family offices, and wealthy investors. The service allows clients to trade event-based contracts using digital assets already stored on BitGo’s platform as collateral.
Client growth remained strong despite the broader crypto market slowdown. BitGo’s customer base climbed 42% from a year earlier to 5,569 clients. In addition, normalized assets on the platform increased 29.4%, showing continued institutional activity even as cryptocurrency prices weakened.
However, falling Bitcoin prices still pressured overall platform balances. Bitcoin dropped nearly 24% during the quarter, reducing total assets on BitGo’s platform to $63 billion from $81.6 billion in the previous quarter.
BitGo finished March holding 2,449 Bitcoin valued at roughly $167.1 million alongside $186.6 million in cash reserves. Investors reacted cautiously to the earnings report. The company’s shares closed at $11.91 on Wednesday before falling 2.1% in after-hours trading.
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