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BitGo posted a $19 million net loss for the second quarter even as revenue jumped 79.6% from a year earlier to $4.33 billion, driven primarily by higher digital asset sales and growth in its stablecoin business.
The loss reversed a $38.3 million profit in the year-earlier quarter but narrowed from a $60.7 million loss in Q1. BitGo said the year-over-year swing primarily reflected an $18.8 million unrealized loss on digital assets, compared with a $55.8 million unrealized gain a year earlier.
Digital Asset Sales Reach $4.2B as Margin Falls to 17 Basis Points
Digital asset sales generated $4.20 billion of revenue, up 84.3% year over year, while related direct costs reached $4.19 billion. That left approximately $7.1 million of quarterly margin after direct transaction costs.
The segment’s margin fell to 17 basis points from 32 basis points in Q1 and 19 basis points a year earlier. BitGo attributed the decline to lower spreads on some spot trades and a smaller mix of derivatives activity.
Adjusted EBITDA was a $4.2 million loss, compared with a $3 million gain a year earlier and a $1.7 million loss in Q1.
Stablecoin Revenue Rises 148% as Staking Take Rate Falls to 6%
Stablecoin-as-a-Service revenue increased 148% year over year to $38.8 million. Sponsor fees totaled $35.7 million, producing an 8% take rate, up from 2.6% a year earlier.
Staking revenue fell 28.8% to $64.7 million even as normalized assets staked increased 36.1% to $11.9 billion. The staking take rate dropped to 6% from 10% a year earlier.
BitGo ended June with 5,833 clients, up 26.2% year over year. Its price-normalized assets on platform increased 31.4% to $65.2 billion.
BitGo Targets $15M in Annual Savings as CFO Exits September 15
BitGo said cost and operating changes made during the quarter are expected to generate approximately $15 million in annualized cash savings. The company also authorized a share repurchase program of up to $50 million.
BitGo ended June with $159 million in cash and 2,523 company-owned Bitcoin valued at approximately $147.7 million, with no corporate-level debt.
CFO Edward Reginelli will resign effective September 15. BitGo has launched a formal search for his successor, while Reginelli will remain in an advisory role after his departure to assist with the transition.
