BitGo reported $3.8 billion in revenue for the first quarter of 2026 — more than double the same period last year, a 111% year-over-year increase. But the crypto custodian also posted a $60.7 million net loss, blaming a 22% drop in Bitcoin’s price and expenses tied to its IPO preparations.
Revenue Doubles, but Red Ink Remains
The top-line number is a bright spot in a quarter that saw many crypto firms struggle. BitGo said strong client growth drove the increase, though it didn't break out user numbers. The revenue jump suggests institutions keep piling into crypto custody, even as the market cools. The $3.8 billion figure puts BitGo among the top earners in private crypto, though the net loss shows the cost of rapid expansion.
Bitcoin’s Slide Hits the Balance Sheet
BitGo’s net loss tracks the broader market downturn. With Bitcoin down roughly a fifth during the quarter, the value of assets under custody shrank, and the company’s own crypto holdings lost value. BitGo holds digital assets on its books, so a prolonged slump would keep earnings under pressure. The 22% decline in Bitcoin's price directly impacts fee revenue tied to assets under management.
IPO Costs Add to the Loss
The other culprit: expenses from going public. BitGo has been working toward an IPO for months, and those costs — legal, accounting, underwriting fees — piled up in Q1. The company didn't specify the exact amount, but such spending is front-loaded and non-recurring. Once the IPO is complete, those costs should fall away, potentially letting the bottom line turn around.
BitGo hasn’t announced a date for its public listing. Until it does, the combination of market volatility and IPO overhead means the red ink may continue. The next quarterly filing will show whether client growth can outpace those headwinds — and whether the company can finally turn its revenue surge into a profit.
