Holding $159 Million in Cash and 2,523 BTC, BitGo's Q2 Revenue Rises to $4.329 Billion but Still Posts Net Loss

Odaily News BitGo has released its second quarterly report since going public. Total revenue for the second quarter increased 79.6% year-over-year to $4.329 billion, up 14.7% quarter-over-quarter; platform clients grew to 5,833, up 26.2% year-over-year, with approximately 1.2 million users. During the same period, the net loss was $19 million, with an Adjusted EBITDA loss of $4.2 million.

BitGo's direct costs for the second quarter were $4.287 billion, of which Digital Asset Sales contributed approximately $4.198 billion in revenue with direct costs of $4.190 billion, resulting in a quarterly gross profit of approximately $7.1 million and a gross margin of 17 basis points, lower than the 32 basis points in the first quarter.

In the second quarter, Normalized Assets on Platform stood at $65.2 billion, up 31.4% year-over-year and 6.4% quarter-over-quarter; Normalized Assets Staked were $11.9 billion, up 36.1% year-over-year. In the stablecoin business, Stablecoin-as-a-Service revenue reached $38.8 million, up 148% year-over-year and 1.7% quarter-over-quarter; the take rate rose to 8.0%, higher than 7.4% in the first quarter and 2.6% in the same period last year.

BitGo's net loss narrowed in the second quarter compared to $60.7 million in the first quarter, but the Adjusted EBITDA loss expanded from $1.7 million in the first quarter to $4.2 million. The company stated that the improvement in net loss was mainly related to reduced unrealized losses on digital assets and the normalization of IPO-related stock-based compensation expenses, while operations continued to be impacted by declining contributions from digital asset sales and staking businesses.

BitGo announced cost reductions and a refocusing of investment priorities, expecting to save approximately $15 million in cash annually, and authorized up to $50 million in share buybacks. As of the end of the second quarter, the company held $159 million in cash and equivalents, 2,523 proprietary bitcoins with a fair value of approximately $147.7 million; the company stated it has no corporate-level debt.