BitGo (BTGO) Stock Drops Despite First Quarter Revenue Surge to $3.8B

Key Takeaways

• Q1 revenue reached $3.8 billion, representing a 112.6% year-over-year increase, fueled by digital asset transactions
• The company’s net loss expanded to $60.7 million, compared to $25.7 million in the same quarter of 2025
• Increased losses stemmed from non-cash bitcoin treasury write-downs and stock-based compensation related to the company’s public debut
• During Q1, bitcoin’s value declined approximately 23.8%, closing March around $66,699
• Shares of BTGO finished Wednesday’s session at $11.91, then dropped an additional 2.1% during extended trading hours

In its inaugural quarterly report as a publicly traded company following its January debut, BitGo (BTGO) delivered a contrasting performance that left investors weighing impressive revenue growth against expanding losses. The after-hours session saw shares retreat following the disclosure.

The cryptocurrency custody provider posted first-quarter revenue of $3.77 billion, marking a 113% year-over-year climb. Digital asset sales drove the performance, reaching $3.7 billion—a substantial 127.9% increase compared to the prior year period. Following Wednesday’s closing price of $11.91, BTGO stock declined 2.1% in after-hours activity.

However, the impressive top-line growth was overshadowed by a net loss that ballooned to $60.7 million, significantly worse than the $25.7 million loss recorded in Q1 2025. This represents more than a doubling of losses year-over-year.

BitGo Holdings, Inc., BTGO

Management attributed the deteriorating bottom line to two primary factors: non-cash adjustments related to mark-to-market losses on the company’s bitcoin treasury holdings, and increased stock-based compensation expenses associated with its January public offering.

Bitcoin‘s value dropped approximately 23.8% throughout the quarter, finishing March trading near $66,699. This decline created direct balance sheet impacts for BitGo due to its cryptocurrency holdings.

The company generated $49.4 million from staking activities during the quarter. Meanwhile, subscription and services revenue contributed $25.6 million.

BitGo’s stablecoin-as-a-service division demonstrated momentum, with revenue climbing 43.6% from the previous quarter to $38.2 million. Management attributed this growth to expanding client adoption and strategic partnerships, particularly through its BitGo Mint platform.

Emerging Product Lines Gain Momentum

BitGo introduced a derivatives product during the first quarter, which generated approximately $3 billion in notional trading volume. This represents an entirely new revenue stream that wasn’t present in the year-ago comparison.

BitGo Mint, which launched just last month, provides institutional clients with capabilities to mint, redeem, and manage stablecoins and digital assets. Mizuho analysts recently characterized BitGo as a “military-grade custodian,” highlighting its security infrastructure and institutional-grade approach.

Adjusted EBITDA registered a loss of $1.7 million in Q1, deteriorating from a positive $3.9 million in the first quarter of 2025. The company’s gross profit margin sits at merely 1.23% over the trailing twelve months, underscoring the capital-intensive nature of its digital asset sales operations.

Current Market Positioning

Shares have declined roughly 36% during the past half-year. At the current $11.91 price point, the stock trades close to its 52-week low, with the company carrying a market capitalization of approximately $1.37 billion.

Wall Street analysts have established price targets spanning from $11 to $18. The consensus forecast implies potential appreciation of approximately 27% from present levels.

BitGo made its NYSE debut in January under the BTGO ticker symbol, securing $212.8 million through its initial public offering.

Analysts surveyed by InvestingPro anticipate the company will achieve profitability this year, projecting earnings per share of $0.05 for the full 2026 fiscal year.

Bitcoin was changing hands at $79,299 in early Thursday morning trading, showing recovery from its first-quarter lows.

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