Holding $159 million in cash and 2,523 BTC, BitGo's Q2 revenue rose to $4.329 billion but it still recorded a net loss
Odaily News BitGo released its second quarterly report after going public. Total revenue in Q2 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 Adjusted EBITDA loss of $4.2 million.
BitGo's direct costs in Q2 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 Q1.
In Q2, Normalized Assets on Platform reached $65.2 billion, up 31.4% year-over-year and 6.4% quarter-over-quarter; Normalized Assets Staked stood at $11.9 billion, up 36.1% year-over-year. In the stablecoin business, Stablecoin-as-a-Service revenue was $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 Q1 and 2.6% in the same period last year.
BitGo's Q2 net loss narrowed from the $60.7 million loss in Q1, but the Adjusted EBITDA loss widened from $1.7 million in Q1 to $4.2 million. The company said 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 affected by declining contributions from digital asset sales and staking businesses.
BitGo announced cost reductions and optimized investment priorities, expecting to save approximately $15 million in cash annually, and authorized a share buyback of up to $50 million. As of the end of Q2, the company held $159 million in cash and equivalents and 2,523 BTC, with the fair value of bitcoin at approximately $147.7 million; the company stated it has no debt at the corporate level.
