BitGo posted $3.77 billion in revenue for the first quarter of 2026, a 112.6% jump from a year earlier. But the custody-focused firm also saw its net loss more than double to $60.7 million, driven by non-cash mark-to-market losses on its Bitcoin treasury and IPO-related stock-based compensation. Adjusted EBITDA flipped to a loss of $1.7 million, compared with a $3.9 million gain in Q1 2025. The numbers, released this week, show a firm riding the crypto recovery in revenue while facing the volatility that comes with holding digital assets on its own balance sheet.
Digital asset sales lead the top line
The bulk of BitGo’s revenue came from Digital Asset Sales, which brought in roughly $3.7 billion — up 127.9% year-over-year. That line includes trading and execution services. But the sequential picture was less rosy: revenue there fell 39.3% from the fourth quarter of 2025. The company attributed the drop to softer crypto markets and a shift away from spot trading.
Stablecoin and staking diverge
Stablecoin-as-a-Service was a bright spot, with revenue climbing 44% sequentially to $38.2 million. Its take rate — the fee it keeps — stood at 7.4%. Staking told a different story: revenue fell 66.2% year-over-year to $49.4 million, as declining token prices ate into rewards. That’s a stark reminder that staking income is tied directly to asset values, which have been under pressure this quarter.
Derivatives launch and client growth
BitGo rolled out its derivatives offering in January 2026 and captured about $3 billion in notional volume during Q1. The firm also said its client base grew 42% year-over-year. Cash and equivalents stood at $186.6 million. Those metrics suggest the company is gaining traction even as it absorbs the costs of going public — the IPO-related stock compensation was a big factor in the net loss.
The cost of holding Bitcoin
The net loss was primarily driven by non-cash mark-to-market impacts tied to BitGo’s Bitcoin treasury. In plain English: when Bitcoin’s price moves down, the firm has to mark those holdings to current market value, creating a paper loss. Combined with IPO-related stock-based compensation — which the company expects to normalize from Q1 levels going forward — the bottom line took a hit. Adjusted EBITDA flipped to a loss, meaning even operating cash flow turned negative on an adjusted basis.
BitGo didn’t specify when it expects the stock comp expense to fully normalize, but the messaging is clear: the first quarter was an outlier. For now, the market will be watching whether the derivatives platform can offset the staking decline and whether digital asset sales can rebound from their sequential slump.
