BitGo (NYSE:BTGO) reported sharply higher first-quarter revenue from a year earlier but a wider GAAP loss, as executives said softer digital asset market conditions and accounting treatment for new derivatives activity made headline results less reflective of the company’s underlying business trends.
Founder and CEO Mike Belshe said BitGo delivered “strong underlying business performance” in the first quarter of 2026 despite “continued softness across the broader digital asset market.” He said the company continued to gain market share across assets under custody, trading volume and several product verticals, while investing in product, platform and go-to-market capabilities.
Total revenue was $3.8 billion, up 113% year over year and down 39% sequentially, CFO Ed Reginelli said. The year-over-year increase reflected a larger digital asset sales business and a broader contribution from Stablecoin-as-a-Service. The sequential decline was primarily tied to lower digital asset sales activity in a weaker crypto market, he said.
Derivatives Launch Changes Revenue Comparisons
Belshe and Reginelli both emphasized that investors should consider the accounting presentation of BitGo’s results. The company launched derivatives within its digital asset sales business at the start of January, generating approximately $3 billion in notional derivatives trading volume during the quarter.
Belshe said some client activity shifted from spot trading to derivatives. That matters for reported revenue because spot trading is reflected on a gross basis, while derivatives are reported on a net basis. As a result, he said, the sequential decline in total revenue “does not fully reflect the underlying platform economics.”
Reginelli said direct costs declined at a similar rate to revenue, while margins and take rates improved across digital asset sales, staking and Stablecoin-as-a-Service. Digital asset sales revenue was $3.7 billion, up 128% from a year earlier and down 39% sequentially. Overall margin in the segment was 32 basis points, compared with 20 basis points a year earlier and 24 basis points in the fourth quarter, helped by the contribution from derivatives.
Adjusted EBITDA was a loss of $1.7 million, compared with positive adjusted EBITDA of $3.9 million in the prior-year quarter and $12.1 million in the fourth quarter. GAAP net loss was $60.7 million, compared with a net loss of $25.7 million a year earlier and $50 million in the fourth quarter. Reginelli said the GAAP result was primarily driven by negative mark-to-market adjustments on digital assets and elevated IPO-related stock-based compensation expense.
Stablecoin Business Remains a Bright Spot
Stablecoin-as-a-Service revenue was $38.2 million, up 44% sequentially, while the take rate improved to 7.4% from 5.5% in the fourth quarter. Reginelli said growth was driven by client adoption, product enhancements and new partnerships.
Belshe said stablecoin infrastructure remains one of BitGo’s most important long-term opportunities, with use cases expanding across payments, treasury management, settlement, tokenized asset infrastructure and embedded financial applications. During and shortly after quarter-end, BitGo launched BitGo Mint, a portal for clients to mint, burn and convert stablecoins.
The company also announced stablecoin-related commercial partnerships with StableC, SoFi and The Better Money Company. Belshe said BitGo extended its USD1 contract and described that partnership as “fantastic.”
In response to analyst questions, Belshe said demand for stablecoin infrastructure remains strong as market participants evaluate potential legislation, including Clarity and GENIUS. He said companies with broad user distribution face a strategic choice about whether to launch their own stablecoins and participate in related economics.
Custody, Staking and Client Growth
BitGo ended the quarter with 5,569 clients served, up 42% year over year, and 1.2 million users, Belshe said. Reported assets on platform were approximately $63 billion, and reported assets staked were $11.8 billion, both lower in dollar terms primarily because of lower digital asset prices.
On a price-normalized basis, Belshe said assets on platform grew 29% year over year and 10% sequentially, while normalized staked balances grew 21% year over year and 27% sequentially. Bitcoin and Ethereum balances on the platform grew 131% year over year and 7% sequentially.
Staking revenue was $49.4 million, down 66% year over year and 15% sequentially, primarily reflecting lower token prices. Reginelli said the staking take rate increased to 16.1% from 7.6% in the fourth quarter and 12.5% a year earlier, driven by additional token onboarding and a more favorable validator mix, including Canton-related activity.
Subscriptions and services revenue was $25.6 million, up 11% year over year and down 35% sequentially. Reginelli said the sequential decline reflected fewer one-time ecosystem and implementation projects compared with an elevated fourth quarter, rather than weakness in the recurring revenue base.
Partnerships and Institutional Infrastructure
Belshe said custody remains the entry point to BitGo’s broader platform, with clients expanding into trading, staking, financing, settlement and stablecoin services over time. He highlighted an expanded partnership with 21Shares, one of the largest issuers of cryptocurrency exchange-traded products, and plans with OKX to bring automated off-exchange settlement infrastructure to institutional clients trading on OKX in the U.S.
The OKX initiative addresses institutional demand to separate custody from trading risk, Belshe said. In response to an analyst question, he said off-exchange settlement can help clients reduce and better quantify risk by avoiding the need to pre-fund assets on trading venues.
BitGo also launched a unified financing platform and expanded Prime Services capabilities. Reginelli said the loan book was roughly $200 million outstanding with clients and that demand for borrowing, particularly in U.S. dollars, exceeds available supply. Belshe said tokenized equities could expand the opportunity for fully collateralized lending.
Second-Quarter Outlook
For the second quarter, Reginelli said BitGo expects digital asset market conditions to remain broadly consistent with current levels, building on stronger performance observed at the end of the first quarter. Digital asset sales revenue is expected to remain broadly consistent with the first quarter, with comparable margins assuming a similar mix of derivatives and spot activity.
Staking revenue is also expected to remain broadly consistent with the first quarter, while subscriptions and services revenue is expected to grow sequentially on a reported basis. Stablecoin-as-a-Service revenue is expected to grow modestly sequentially, supported by client adoption and new partnerships.
Reginelli said total expenses in the second quarter, excluding direct costs tied to digital asset sales, staking and Stablecoin-as-a-Service, are expected to decline from first-quarter levels as IPO-related charges and stock-based compensation normalize. BitGo ended the quarter with approximately $186.6 million in cash and $167.1 million of Bitcoin held in treasury.
Belshe closed the call by saying BitGo remains focused on building an institutional-grade digital asset infrastructure platform. He said normalized assets on platform and staked balances continued to grow despite lower reported asset values, which he said could support upside if digital asset prices recover.
About BTGO (NYSE:BTGO)
BitGo Holdings Inc is the digital asset infrastructure company delivering custody, wallets, staking, trading, financing, stablecoins and settlement services from regulated cold storage. BitGo Holdings Inc is based in NEW YORK.
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