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- BitGo revenue jumped to $3.8 billion as institutional crypto activity increased.
- Bitcoin treasury losses and IPO-related costs pushed net losses above $60 million.
- Institutional client growth remained strong despite broader crypto market weakness.
Crypto infrastructure firm BitGo posted a significantly wider net loss in the first quarter of 2026, even as revenue more than doubled year-over-year and institutional adoption on its platform continued to expand.
The company said rising Bitcoin-related accounting losses and expenses tied to its recent IPO weighed heavily on earnings during a quarter marked by weaker crypto market conditions.
Revenue Climbs as Trading Activity Increases
BitGo generated $3.8 billion in revenue for the quarter ending March 31, compared with $1.8 billion during the same period last year. The jump was largely fueled by increased digital asset trading activity and stronger performance from its stablecoin services business.
Still, revenue declined nearly 39% from the previous quarter, when BitGo reported $6.2 billion. The company attributed part of the slowdown to changing client behavior as more traders shifted toward derivatives products instead of spot trading.
BitGo’s newly launched derivatives platform processed around $3 billion in notional trading volume during the quarter, signaling growing institutional interest in alternative crypto trading strategies.
Bitcoin Treasury Losses Pressure Earnings
Despite higher revenue, BitGo’s quarterly net loss widened to $60.7 million, compared with $25.7 million a year earlier.
A major factor behind the decline was a $53.7 million non-cash mark-to-market loss linked to the falling value of the company’s Bitcoin holdings. Additional pressure came from stock-based compensation expenses connected to BitGo’s IPO.
The company also reported adjusted EBITDA slipping into negative territory, posting a $1.7 million loss versus a $3.9 million gain in Q1 2025. One-time legal and professional fees tied to the public listing also impacted results.
BitGo noted that IPO-related compensation expenses are expected to moderate in future quarters.
Institutional Client Growth Remains Strong
While profitability weakened, BitGo continued to attract more institutional users to its platform.
The company’s client base rose 42% year-over-year to 5,569 institutional customers, including exchanges, hedge funds, fintech firms, and asset managers. Total users climbed to 1.2 million.
Its stablecoin-as-a-service business also showed strong momentum, with revenue increasing 43.6% to $38.2 million. However, staking revenue dropped sharply due to lower token prices across the crypto market.
BitGo ended the quarter holding $186.6 million in cash and 2,449 Bitcoin worth approximately $167.1 million.
BitGo’s results mirror a broader trend across the crypto industry, where several major firms reported widening losses during the first quarter of 2026.
Also Read: BitGo Expands Canton Coin Services — Is Tokenized Finance Entering a New Era?
Companies including Coinbase, MARA Holdings, and Riot Platforms also faced heavy losses tied to weaker crypto prices and Bitcoin treasury revaluations.
Although BitGo’s revenue growth and client expansion suggest continued institutional demand for crypto infrastructure, the quarter highlights how volatile digital asset markets continue to pressure profitability across the sector.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
