BitGo Revenue Soars 79.6% as Institutional Activity Grows

BitGo Holdings Inc., the parent company of cryptocurrency custodian BitGo, reported strong second-quarter revenue growth despite posting a net loss. The company's Q2 revenue jumped 79.6% year-over-year to $4.3 billion, driven primarily by increased institutional activity across its platform.

The revenue growth was led by digital asset sales, which reached $4.2 billion and rose 84.3% from the same period last year. Stablecoin-as-a-Service revenue also saw a significant increase of 148% year-over-year to $38.8 million. However, BitGo reported a net loss of $19 million for the quarter, down from a net income of $38.3 million in Q2 2022.

BitGo attributed the improvement in its quarterly net loss to lower compensation costs and an unrealized digital asset loss of $18.8 million. The company's normalized assets on the platform climbed 31.4% year-over-year to $65.2 billion, while its client count rose 26.2% to 5,833.

Following the quarterly financial update, BitGo authorized a share repurchase program worth up to $50 million and identified operating changes expected to produce approximately $15 million in annualized cash savings.