BitGo Holdings, Inc.

Total revenue was $4.3 billion, up 14.7% sequentially and 79.6% year over year. Direct costs were approximately $4.3 billion, up 15.1% sequentially and 80.8% year over year. GAAP net loss was $19 million versus a $60.7 million net loss in Q1, and adjusted EBITDA was a loss of $4.2 million versus a loss of $1.7 million in Q1 and a profit of $3 million a year ago. Digital asset sales revenue was $4.2 billion, with overall quarterly margin of about $7.1 million and margin of 17 basis points versus 32 basis points in Q1. Staking revenue was $64.7 million, with fees of $60.8 million and a 6% take rate versus 16.1% in Q1 and 10% a year ago. Subscriptions and services revenue was $27.5 million, and Stablecoin-as-a-Service revenue was $38.8 million, with stablecoin sponsor fees of $35.7 million and an 8% take rate. Expenses excluding direct costs were $59.9 million, down 13% sequentially; the company recorded a $1.3 million restructuring charge. BitGo ended the quarter with $159 million of cash and cash equivalents, no corporate-level debt, and 2,523 company-owned Bitcoin valued at about $148 million. For Q3, management expects digital asset sales revenue to be relatively flat versus Q2, staking revenue to remain broadly consistent, subscriptions and services to grow sequentially, Stablecoin-as-a-Service to post modest sequential growth, and expenses excluding direct costs to decline sequentially.

Mike Belshe said the quarter highlighted BitGo’s platform growth even though financial performance fell short because of a difficult crypto market, lower spreads, and an unfavorable revenue mix. He emphasized the company’s land-and-expand model, pointing to growing custody relationships that can lead to trading, staking, financing, settlement, treasury, and tokenization workflows over time. He was also upbeat about regulation, stablecoins, tokenization, and quantum-risk tooling as long-term drivers, while noting BitGo is reducing costs, using AI more broadly, and focusing resources on the highest-value initiatives.

Ed Reginelli focused on the financial mechanics behind the quarter. He noted $4.3 billion of revenue, $4.3 billion of direct costs, a $19 million GAAP net loss, and a $4.2 million adjusted EBITDA loss, while explaining that lower margins and a smaller derivatives mix hurt profitability. He highlighted $59.9 million of expenses excluding direct costs, the $1.3 million restructuring charge, $159 million of cash and cash equivalents, no corporate debt, and 2,523 company-owned Bitcoin worth about $148 million. He also said $9 million of annualized savings from restructuring plus another $6 million from other initiatives should start benefiting results in Q3, and he guided to sequential expense decline and Q3 adjusted EBITDA moving closer to breakeven or slightly profitable.

Analysts pressed on custody market structure, regulation, quantum-resistant wallets, stablecoin take rates, competition, investment priorities, digital asset margins, and whether Q3 could reach breakeven adjusted EBITDA. Management repeatedly argued that BitGo’s full-stack infrastructure and regulated positioning create an advantage, but said custody will likely consolidate only over time and in a global, multi-jurisdiction market. On margins, Ed said July showed some recovery and that digital asset sales margin could move back toward a historical 20 to 25 basis point range. On stablecoins, Mike said fees are mainly driven by balances rather than transaction activity, and on tokenized equities he said BitGo’s focus is enabling new lending and custody use cases rather than direct trading fees.