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    BTGO
    Earnings call· Jun 2026(Q2 FY26)

    BITGO HOLDINGS Q2 FY26 earnings call BTGO

    Aug 12, 2026 Source

    Executive summary

    BitGo Q2 FY26 — Platform Growth Amidst Market Headwinds, Focus on Cost Efficiency and Tokenized Equities

    BitGo navigated a challenging crypto market in Q2 FY26 by focusing on platform growth, client expansion, and operational efficiency. Despite profitability pressures from lower margins and an unfavorable revenue mix, the company achieved significant increases in assets on platform and assets staked. Strategic cost reductions and advanced AI integration are expected to improve future operating leverage, while key partnerships and product innovations in tokenized equities and quantum-resistant wallets reinforce its leadership in institutional digital asset infrastructure.

    Highlights

    5

    • Normalized assets on platform grew to approximately $65 billion, gaining market share in a contracting market.

    • Normalized assets staked grew to approximately $12 billion, up 3% sequentially and 36.1% year-over-year.

    • Annualized cash savings of approximately $15 million expected from Q3 FY26 due to workforce reduction and cost initiatives.

    • AI adoption led to 20% of engineering issues resolved by autonomous agents and 17% of inbound support tickets first-responded by AI.

    • Successful processing of first U.S. transactions using DTCC tokenized assets in July, ahead of full production launch.

    Concerns

    5

    • Q2 financial performance fell short of expectations due to lower margins and unfavorable revenue mix.

    • Adjusted EBITDA was a loss of $4.2 million, compared to a loss of $1.7 million in Q1 FY26 and a profit of $3 million a year ago.

    • Digital asset sales margin decreased to 17 basis points from 32 basis points in Q1 FY26 and 19 basis points in the prior year period.

    • Staking take rate decreased to 6% from 16.1% in Q1 FY26 and 10% a year ago due to a large institutional client with a lower contractual rate and softer contributions from another client.

    • Total crypto market capitalization fell 13% to $2.1 trillion, Bitcoin was down 14%, and industry-wide trading volumes declined over 20%.

    Guidance & targets

    5
    CategoryTargetConfidence
    Digital asset sales revenue
    relatively flat versus Q2 performance
    medium materiality
    Medium
    Staking revenue
    broadly consistent with the second quarter
    medium materiality
    Medium
    Subscriptions and services revenue
    sequential growth
    medium materiality
    Medium
    Stablecoin as a Service revenue
    modest sequential growth
    medium materiality
    Medium
    Expenses excluding direct costs
    decline sequentially
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Digital Asset Sales
    Lower trading margins and derivatives volume impacted profitability, despite increased overall volume. Margin decreased from 32 bps in Q1 FY26 and 19 bps in the prior year period.
    Overall margin: 17 basis pointsDerivatives notional volume: $1 billion (Q2 FY26)Derivatives notional volume: $3 billion (Q1 FY26)
    		$4.2 billion84.3%14.7%$7.1 million
    Staking
    Sequential revenue increase driven primarily by substantial new staking activity from a large institutional client with a lower contractual take rate. Softer contributions from another large client also weighed on overall margins. Take rate decreased from 16.1% in Q1 FY26 and 10% a year ago.
    Take rate: 6%Normalized assets staked: $12 billionNormalized assets staked growth YoY: 36.1%Normalized assets staked growth QoQ: 3%
    		$64.7 million-28.8%30.9%$60.8 million
    Subscriptions and Services
    The sequential increase reflected continued client growth and activity, together with increased project-based ecosystem and implementation work.
    		$27.5 million8.5%7.7%—
    Stablecoin as a Service
    Sequential growth was supported by higher reserve balances from existing issuer programs and continued client adoption. Take rate increased from 7.4% in Q1 FY26 and 2.6% a year ago.
    Take rate: 8%
    		$38.8 million148%1.7%$35.7 million

    Operational metrics

    18
    Adjusted EBITDA
    -$4.2 millionvs -$1.7 million in Q1 FY26, vs $3 million in Q2 FY25
    Q2 FY26

    The sequential decline primarily reflected lower economic contribution from digital asset sales and staking as a result of lower overall margins and take rates, partially offset by lower cash compensation and professional fees.

    Unrealized loss on digital assets
    $18.8 millionvs $53.7 million in Q1 FY26
    Q2 FY26

    Contributed to sequential improvement in GAAP net loss.

    Share-based compensation expense
    $3.6 millionvs $11.2 million in Q1 FY26
    Q2 FY26

    Primarily reflected the absence of the one-time IPO-related share-based compensation expense recognized in Q1 FY26.

    Expenses excluding direct costs
    $59.9 milliondown 13% sequentially, up 38.9% year-over-year
    Q2 FY26

    The sequential decline was primarily driven by a 27.6% decrease in compensation and benefits expense.

    Compensation and benefits expense
    $29.5 milliondown 27.6% sequentially from $40.8 million
    Q2 FY26

    Reflecting the normalization of IPO-related share-based compensation, together with lower cash compensation.

    Restructuring charge
    $1.3 million
    Q2 FY26

    Related to the workforce reduction implemented at the end of Q2 FY26.

    Annualized cash savings
    $15 million
    FY26

    $9 million from restructuring and $6 million from other initiatives.

    Cash and cash equivalents
    $159 million
    Q2 FY26

    As of the end of the quarter.

    Company-owned Bitcoin
    2,523
    Q2 FY26

    As of the end of the quarter.

    Share repurchase program
    $50 million
    FY26

    Board authorized a share repurchase program of up to $50 million. Repurchases are discretionary and will depend on market conditions, liquidity, regulatory capital requirements, and other uses of capital.

    Total crypto market capitalization
    $2.1 trilliondown 13% from $2.4 trillion
    Q2 FY26

    Third straight quarterly decline and the lowest level since September.

    Bitcoin price change
    -14%
    Q2 FY26

    Industry-wide trading volumes declined more than 20% and volatility held at multi-year lows.

    AI resolution of engineering issues
    20%
    Monthly

    Autonomous AI agents are fully resolving approximately 20% of engineering issues each month, with every single change still reviewed by human engineers.

    AI first response to support tickets
    17%
    Monthly

    AI now provides the first response to roughly 17% of all inbound support tickets, improving response times and reducing support costs.

    AI-generated or assisted code
    40%
    Q2 FY26

    More than 40% of code is AI-generated or assisted, with throughput up 220% in the last quarter alone.

    U.S. dollar stablecoins circulating value
    $300 billion
    Current

    U.S. dollar stablecoins represent more than $300 billion of circulating value and continue expanding into payments, settlement, and treasury applications.

    Real-world assets tokenized
    $35 billion
    Current

    More than $35 billion of real-world assets have already been tokenized, and the company believes it's still in the very early stages of adoption.

    Normalized assets on platform
    $65 billionsequential and year-over-year increase
    Q2 FY26

    Reflects continued adoption of the BitGo platform and market share gains in a contracting market.

    Product announcements

    2
    ProductTypeDetails
    Quantum Risk Management capabilities for Bitcoin wallets (AptiCore)launch
    GoStocks (Tokenized Equities)launch

    Deals & partnerships

    4
    DTCCProviding wallet infrastructure supporting the DTCC tokenization initiative.

    In July, the first U.S. transactions using DTCC tokenized assets were successfully processed, marking an important step ahead of the platform's full production launch. BitGo also serves as the sole qualified custodian for the Canton network, supporting DTCC's tokenized equity initiative.

    Canton NetworkSole qualified custodian for the Canton network.better part of 1 year

    The Canton team did a great job of hitting the institutional market with a private permission ledger and privacy components. BitGo is the only qualified custodian on the network.

    FigureSole custodian for Figure's open network tokenized equities platform.

    An additional example of institutions increasingly selecting BitGo's regulated infrastructure as they move digital assets, stablecoins, and tokenized securities into production.

    SoFi BankIssuing SoFi USD stablecoin in partnership with BitGo.

    Used in the GoStocks demo to borrow $20,000 against tokenized SpaceX shares as collateral.

    Risks & headwinds

    3
    Challenging Crypto Market ConditionsQ2 FY26

    Total crypto market capitalization fell 13% from about $2.4 trillion to about $2.1 trillion; Bitcoin was down about 14%; industry-wide trading volumes declined more than 20%.

    Mitigation: BitGo gained market share, expanded its client base, grew normalized assets on platform and assets staked, implemented cost reductions, and sharpened investment priorities.

    Lower Margins and Unfavorable Revenue MixQ2 FY26

    Digital asset sales overall margin decreased to 17 basis points (compared to 32 basis points in Q1 FY26 and 19 basis points in the prior year period); staking take rate decreased to 6% (compared to 16.1% in Q1 FY26 and 10% a year ago).

    Mitigation: Lowered cost base, sharpened investment priorities, concentrated resources on capabilities with clearest client demand and economic potential. Expectation for digital asset sales margin to recover to 20-25 bps range in Q3 FY26.

    Regulatory Uncertainty (Clarity Act)Near term

    Unquantified, but described as delaying things overall and negative for U.S. markets if it cannot get done.

    Mitigation: BitGo is well-positioned globally with regulated entities outside the U.S.; the digital asset industry will continue to advance regardless, potentially shifting activity to other jurisdictions.

    What to watch in Q3 FY26

    5

    Digital asset sales revenue

    Q3 FY26
    Current$4.2 billion
    TargetRelatively flat versus Q2 performance

    Why it matters

    Indicates stability in a key revenue stream and product mix, crucial for overall financial performance.

    For digital asset sales, we expect reported revenue to be relatively flat versus Q2 performance, reflecting a similar product mix between spot and derivatives.

    Q&A highlights

    7

    What is the expected market structure for crypto custody, will it consolidate, and how does BitGo position itself?

    Mike Belshe expects consolidation but notes it's too early to predict the exact number of custodians. He highlighted BitGo's positioning as an infrastructure provider across multiple layers (self-custody, direct custody, sub-custody) globally, and its readiness to support the digitization of real-world assets and U.S. equities markets.

    “BitGo's technology and BitGo's business should be well poised in all of those scenarios.”

    asked by James Yaro · answered by Michael Belshe

    2 min read6 chapters

    Detailed Narrative

    01

    Market Conditions and Platform Resilience

    The second quarter was challenging for the crypto market, with total market capitalization falling 13% to $2.1 trillion and Bitcoin down 14%. Despite this, BitGo gained market share, expanding its client base and growing normalized assets on platform to $65 billion and normalized assets staked to $12 billion, reflecting continued adoption of its infrastructure.

    02

    Operational Efficiency and AI Integration

    BitGo implemented significant cost reduction initiatives, including a workforce reduction and repatriation of node infrastructure, expecting $15 million in annualized cash savings from Q3 FY26. The company also expanded AI use, with autonomous AI agents resolving 20% of engineering issues and AI providing first responses to 17% of support tickets, leading to measurable productivity gains and over 40% AI-generated or assisted code.

    03

    Quantum Risk Management

    BitGo introduced Quantum Risk Management capabilities for Bitcoin wallets, including an "AptiCore" quantum resistance score to measure exposure and remediation tools. This proactive approach aims to address institutional concerns and differentiate BitGo's security offerings, reinforcing client trust and the platform's value proposition.

    04

    Tokenized Equities and Financial Infrastructure

    The company demonstrated its "GoStocks" loop, enabling the tokenization of publicly listed securities, qualified custody at BitGo Bank and Trust, and borrowing against these assets using regulated stablecoins. This initiative, exemplified by work with DTCC, aims to build foundational infrastructure for a future where traditional financial assets move onto digital rails.

    05

    Strategic Partnerships and Ecosystem Role

    BitGo is actively involved in critical financial market infrastructure, providing wallet infrastructure for the DTCC tokenization initiative and serving as the sole qualified custodian for the Canton network and Figure's open network tokenized equities platform. These partnerships highlight BitGo's role in enabling institutional adoption of digital assets, stablecoins, and tokenized securities.

    06

    Leadership Transition

    CFO Ed Reginelli will be transitioning from his role in the coming quarter, with a smooth and orderly transition planned. The company will provide an update on succession plans at the appropriate time⏳, acknowledging his significant contributions over the past six years.

    AI-generated summary of the company’s earnings call. Not investment advice.