How would the absence of the Clarity Act or the SEC's innovation exemption affect tokenization and growth?

Mike Belshe suggested BitGo might be 'selfish better off' without the Clarity Act due to its established operations, but acknowledged it would delay broader market participation and be negative for U.S. markets. He expressed optimism for the Clarity Act but stated the digital asset industry would advance globally regardless, potentially shifting activity to other jurisdictions. “I think it just delays things overall. I think that's negative for U.S. markets if it can't get done.”

Is the quantum resistant wallet a competitive feature, an upsell, or broadly available, and how will it drive incremental share?

Mike Belshe clarified that it's not intended as a competitive advantage or upsell but as a broad security enhancement. He emphasized BitGo is pioneering this to ease institutional fears, making Bitcoin wallets quantum-aware by default with minimal fee impact, and believes similar measures should be adopted industry-wide. “In terms of a competitive advantage, no, it's not intended to be a competitive advantage. But I think BitGo's poised well to do this.”

How is BitGo positioning itself against new and existing competitors in custody, stablecoin, and tokenized equities?

Mike Belshe highlighted BitGo's strong growth in normalized assets and its comprehensive full-stack offering (self-custody + custody, trading, staking, lending). He emphasized BitGo's foundational approach to tokenized equities (UCC Article 8, perfected security) enabled by its OCC National Trust Bank Charter, giving it a significant lead over newer entrants. “I think BitGo's been doing it for a while and it's very well proven. So I think we'll do well there.”

BTGO

BitGo (BTGO) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 12, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Digital asset sales revenue	relatively flat versus Q2 performance medium materiality	Q3 · FY26	Medium
Staking revenue	broadly consistent with the second quarter medium materiality	Q3 · FY26	Medium
Subscriptions and services revenue	sequential growth medium materiality	Q3 · FY26	Medium
Stablecoin as a Service revenue	modest sequential growth medium materiality	Q3 · FY26	Medium
Expenses excluding direct costs	decline sequentially high materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 billion	84.3%	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 million	8.5%	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 million	148%	1.7%	$35.7 million

Product announcements

Product	Type	Timeline	Details
Quantum Risk Management capabilities for Bitcoin wallets (AptiCore)	launch	recently announced
GoStocks (Tokenized Equities)	launch	today (demoed live)

Deals & partnerships

DTCC Providing 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 Network Sole 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.

Figure Sole 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 Bank Issuing SoFi USD stablecoin in partnership with BitGo.

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

Risks & headwinds

Challenging Crypto Market Conditions Q2 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 Mix Q2 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

Digital asset sales revenue

Q3 FY26

Current $4.2 billion

Target Relatively 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.

Find out whether BTGO delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.