BitGo doubles revenue to $3.8B in Q1 but posts wider net loss

BitGo Holdings reported first-quarter revenue of $3.8 billion, a 112.6% increase from a year earlier, and a net loss of $60.7 million. The quarter marks the company's first earnings report since its January initial public offering.

Digital asset sales made up $3.7 billion of the quarter's revenue, a 127.9% year-over-year rise. Staking revenue totaled $49.4 million and subscription and services revenue was $25.6 million. Revenue from the company's stablecoin-as-a-service offering increased 43.6% sequentially to $38.2 million, which BitGo attributed to expanded client adoption and new partnerships linked to its recent minting service.

The company said higher trading and sales activity among institutional clients supported the top-line growth. BitGo launched a derivatives product during the quarter that produced roughly $3 billion in notional trading volume. Last month the firm introduced BitGo Mint, a service that enables institutional clients to mint, redeem and manage stablecoins and other tokenized assets.

Net loss widened from $25.7 million a year earlier. BitGo attributed the larger loss mainly to non-cash mark-to-market impacts on its bitcoin treasury and higher stock-based compensation tied to the IPO. Bitcoin fell about 23.8% during the quarter and ended March near $66,699, reducing the recorded value of holdings that are adjusted to market prices.

Mike Belshe, BitGo's chief executive, noted the company delivered “strong underlying business performance in the first quarter despite a challenging market environment” and added BitGo will invest to scale its infrastructure and expand stablecoin and tokenized-asset offerings.

BitGo's shares began trading on the New York Stock Exchange in January under the ticker BTGO after the IPO that raised $212.8 million. The stock showed limited movement on the quarterly news, closing slightly higher in the regular session before slipping in after-hours trading. Some analysts have pointed to BitGo's security track record and focus on institutional clients as strengths.

Founded as a custody and infrastructure provider for institutional crypto clients, BitGo has expanded into trading, staking, derivatives and stablecoin services. The company said it will continue investing in product development and client growth to pursue opportunities in stablecoins and tokenized financial assets.