BitGo’s second quarterly report since its listing showed a sharp jump in revenue, but profits remained under pressure. On Aug. 13, the crypto custody and infrastructure company said second-quarter revenue rose 79.6% year over year to $4.329 billion and 14.7% from the prior quarter. Customer count reached 5,833, up 26.2% from a year earlier.
The top line did not translate into stronger earnings. BitGo reported a second-quarter net loss of $19 million and an Adjusted EBITDA loss of $4.2 million. Direct costs came to $4.287 billion, nearly matching total revenue.
The largest revenue driver was Digital Asset Sales, which contributed about $4.198 billion. Direct costs for that business were $4.190 billion, leaving gross profit of only about $7.1 million and a margin of 17 basis points, down from 32 basis points in the first quarter.
Operating metrics continued to expand. Platform customers rose to 5,833, with user count at roughly 1.2 million. Normalized Assets on Platform reached $65.2 billion, up 31.4% year over year and 6.4% quarter over quarter. Normalized Assets Staked totaled $11.9 billion, up 36.1% from a year earlier.
BitGo said institutional adoption continued to rise and demand was growing across digital assets, stablecoins and tokenized financial markets. Stablecoin-as-a-Service stood out in the quarter: revenue climbed 148% year over year to $38.8 million, while the take rate increased to 8.0% from 7.4% in the first quarter and 2.6% a year earlier.
Management said new stablecoin programs and higher reserve balances supported the business, and the company still sees room to onboard more projects.
BitGo said its net loss improved from a $60.7 million loss in the first quarter, mainly because unrealized losses on digital assets declined and IPO-related stock compensation normalized. Operating results, however, were still hurt by lower contributions from digital asset sales and staking.
The company also said it will cut costs and tighten investment priorities, which it expects to generate about $15 million in annual cash savings. BitGo authorized up to $50 million in share repurchases.
As of the end of the quarter, BitGo held $159 million in cash and cash equivalents and 2,523 proprietary bitcoins, valued at about $147.7 million. The company said it had no corporate debt.