Key Highlights
- Q1 revenue reached $3.8 billion, representing a 112.6% year-over-year increase, fueled primarily by digital asset transactions
- Net losses expanded to $60.7 million from $25.7 million in the prior-year quarter
- Increased losses stem from non-cash bitcoin treasury write-downs and stock-based compensation related to the company’s recent public offering
- Bitcoin’s value declined approximately 23.8% throughout the quarter, finishing March around $66,699
- Shares of BTGO ended Wednesday’s session at $11.91 before dropping 2.1% in extended trading
In its inaugural earnings report as a publicly traded company, BitGo (BTGO) delivered contrasting results that left investors uncertain. While revenue figures impressed with significant growth, mounting losses prompted shares to retreat in after-hours trading.
The digital asset custodian recorded first-quarter revenue of $3.77 billion, marking a 113% year-over-year climb. Digital asset sales dominated performance, contributing $3.7 billion — a substantial 127.9% increase compared to the same period last year. BTGO stock finished regular trading at $11.91 on Wednesday before sliding 2.1% in after-market activity.
Despite the impressive top-line growth, the company’s bottom line told a different story. Net losses ballooned to $60.7 million, compared with a $25.7 million loss during the first quarter of 2025 — representing more than a doubling of red ink year-over-year.
Management attributed the expanded losses primarily to two factors: non-cash mark-to-market adjustments on its bitcoin holdings, and increased stock-based compensation expenses connected to its January initial public offering.
Bitcoin experienced a significant downturn during the three-month period, declining approximately 23.8% to close March trading near $66,699. This depreciation directly impacted BitGo’s financial statements due to its cryptocurrency treasury positions.
The staking division contributed $49.4 million in quarterly revenue. Meanwhile, subscription and services operations generated $25.6 million.
BitGo’s stablecoin-as-a-service platform demonstrated strong momentum, with revenue climbing 43.6% quarter-over-quarter to reach $38.2 million. Company executives attributed this growth to expanding client adoption and strategic partnerships, particularly through its BitGo Mint infrastructure.
Emerging Revenue Streams Take Shape
BitGo introduced a derivatives platform during the first quarter, generating approximately $3 billion in notional trading volume. This represents an entirely new revenue channel that wasn’t operational in the prior-year period.
BitGo Mint, which debuted last month, enables institutional clients to mint, redeem, and oversee stablecoins and digital assets. Mizuho analysts recently characterized BitGo as a “military-grade custodian,” highlighting its security infrastructure and institutional orientation.
Adjusted EBITDA registered a negative $1.7 million in Q1, deteriorating from a positive $3.9 million during the first quarter of 2025. The company’s gross profit margin currently sits at just 1.23% on a trailing twelve-month basis, underscoring the capital-intensive nature of its digital asset sales operations.
Current Market Position
Shares have declined roughly 36% over the past half-year. Trading at $11.91, the stock hovers near its 52-week low, with the company commanding a market capitalization of approximately $1.37 billion.
Wall Street analysts have established price targets spanning from $11 to $18. The consensus forecast implies potential upside of about 27% from present levels.
BitGo commenced trading on the New York Stock Exchange in January under the BTGO ticker, securing $212.8 million through its public offering.
Analysts monitored by InvestingPro anticipate the company will achieve profitability during the current year, projecting earnings per share of $0.05 for the full 2026 fiscal year.
Chief Executive Officer Mike Belshe stated the firm delivered “strong underlying business performance” during Q1 “despite a challenging market environment.”
Bitcoin was changing hands at $79,299 in early Thursday trading, rebounding from its first-quarter lows.
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