BitGo Q2 Revenue Climbs to $4.33 Billion, but Low-Margin Trading Still Weighs on Profitability

BitGo’s latest quarterly report offers a useful snapshot of the crypto infrastructure market in 2025: institutional demand is still expanding, stablecoin activity is accelerating, and assets on platform continue to grow. But it also shows a hard truth that often gets lost in headline revenue numbers: in digital asset custody and brokerage, scale does not automatically translate into strong earnings.

The company’s second-quarter results underscore that tension. Revenue rose sharply year over year, customer counts increased, and assets held on the platform reached new highs. Yet the quarter still ended with a net loss, while one of its largest revenue streams contributed only a sliver of gross profit.

Revenue Growth Was Strong, but the Mix Matters

BitGo reported total revenue of $4.329 billion in Q2, up 79.6% year over year and 14.7% quarter over quarter. At first glance, that figure places the company in a rare category among crypto firms: it is already operating at multi-billion-dollar quarterly scale.

But the real story is in the composition of that revenue.

The largest contributor was Digital Asset Sales, which generated about $4.198 billion in revenue. The catch is that direct costs for that business were almost the same, at $4.190 billion. That left only around $7.1 million in gross profit, or roughly 17 basis points of margin, down from 32 basis points in the prior quarter.

In other words, most of the reported top-line growth came from a low-margin activity that adds scale, but very little earnings power. That is a familiar pattern in crypto markets when exchange-linked or OTC-style flows expand quickly: revenue can surge without corresponding operating leverage.

Core Platform Metrics Still Look Healthy

While the transaction-heavy business remains thin, the underlying platform continues to attract more institutional users.

BitGo said platform customers reached 5,833, up 26.2% year over year, while the user base rose to roughly 1.2 million. More importantly, the company’s custody and staking footprint continued to expand:

• Normalized Assets on Platform: $65.2 billion, up 31.4% year over year
• Normalized Assets Staked: $11.9 billion, up 36.1% year over year

Those numbers matter because they point to broader institutional adoption of crypto custody, staking, and settlement infrastructure. The market is no longer just about speculative trading. It is also about treasury management, secure asset storage, staking yield, and the plumbing required for tokenized finance.

That broader shift is consistent with what many observers have been tracking across the industry: institutions want regulated rails for crypto custody and infrastructure that can support stablecoins, tokenized assets, and on-chain settlement at scale. The trend is also visible in research from organizations such as the Bank for International Settlements on tokenization, which has repeatedly highlighted the structural role that programmable money and tokenized assets may play in future market infrastructure.

Stablecoin Infrastructure Was the Clear Bright Spot

If there was one area that looked decisively stronger this quarter, it was stablecoins.

BitGo’s Stablecoin-as-a-Service revenue reached $38.8 million, up 148% year over year and 1.7% quarter over quarter. Even more notable, the take rate improved to 8.0%, versus 7.4% in Q1 and 2.6% a year earlier.

That is a meaningful improvement in monetization.

For crypto infrastructure providers, stablecoins are increasingly attractive because they sit at the intersection of payments, treasury, and capital markets. Unlike pure trading revenue, stablecoin infrastructure can benefit from recurring issuance, reserve balances, and ongoing platform integration. As global payment use cases expand and institutions continue testing on-chain settlement, stablecoin rails have become one of the most commercially promising areas in the digital asset economy.

BitGo said the rise in stablecoin revenue was supported by new project launches and higher reserve balances, and management still sees room for additional client onboarding. That outlook is in line with a broader industry pattern: more institutions are moving from “exploring blockchain” to “deploying blockchain infrastructure.”

Profitability Remains the Main Problem

Despite stronger revenue and better stablecoin economics, BitGo is still not delivering clean bottom-line performance.

The company posted a net loss of $19 million in Q2. That was better than the $60.7 million loss in Q1, but the adjustment metric was less encouraging: Adjusted EBITDA loss widened to $4.2 million, from $1.7 million in the prior quarter.

This divergence is important. A narrower net loss can be helped by accounting effects, mark-to-market changes, or normalization of one-off expenses. In BitGo’s case, the company said the improvement in net loss mainly reflected reduced unrealized losses on digital assets and the normalization of IPO-related equity compensation costs. But operating performance still came under pressure from weaker contributions in digital asset sales and staking.

That means the company’s profitability challenge is not just a temporary accounting issue. It is structural. If a large share of revenue comes from a business with near-zero gross profit, then scale alone will not fix the earnings profile.

For investors and crypto industry watchers, this is a useful reminder that not all infrastructure revenue is equal. In digital assets, a company may look large on paper while still struggling to convert growth into cash-generating margin.

Balance Sheet: Cash, Bitcoin, and No Corporate Debt

BitGo ended the quarter with $159 million in cash and cash equivalents and 2,523 BTC on its own balance sheet, with a fair value of about $147.7 million. The company also said it has no corporate debt.

That combination gives it some flexibility. A clean balance sheet is especially valuable in crypto, where funding markets can tighten quickly and confidence matters. It also helps explain why management felt comfortable authorizing up to $50 million in share repurchases.

At the same time, the company announced plans to reduce costs and sharpen investment priorities, aiming for about $15 million in annual cash savings. That is a sensible move if management believes the business is entering a more mature phase where discipline matters as much as growth.

What This Means for the Crypto Market

BitGo’s quarter reflects a broader truth about the current crypto cycle:

1. Institutional adoption is still real.
   Custody, staking, and stablecoin services continue to gain traction.

2. Revenue growth is not the same as earnings quality.
   Low-margin trading-linked activity can inflate top-line numbers without creating durable profit.

3. Stablecoins and tokenization are becoming core infrastructure themes.
   These are increasingly the areas where product-market fit and monetization look strongest.

4. Investors are rewarding resilience, not just scale.
   In a market that has become more selective, businesses need both growth and margin discipline.

For users, this also highlights an important distinction. Institutional platforms can handle complex treasury and settlement workflows, but individuals still need to think carefully about how their assets are stored and who controls the keys.

Final Thoughts

BitGo’s latest results show a company with strong platform momentum, rising stablecoin revenue, and growing institutional reach. But they also show the limits of a business model that still depends heavily on low-margin transaction flow.

The bigger takeaway for the crypto sector is that infrastructure winners will likely be those that combine custody, compliance, and scalable settlement with real operating leverage. That is especially relevant as stablecoins, staking, and tokenized assets move further into the mainstream.

For everyday users and long-term holders, the lesson is even simpler: the more the industry matures, the more important self-custody becomes. If you want direct control over your crypto assets, a secure hardware wallet such as OneKey can be a practical choice for managing private keys with a self-custody-first approach.