Despite a significant surge in revenue, the publicly traded digital asset infrastructure company BitGo recorded a net loss of $19 million for the second quarter of 2026. The firm’s revenue climbed to $4.3 billion, an increase of nearly 80% compared to the same period last year.

According to a Wednesday report from BitGo (BTGO), the Q2 net loss represents an improvement from the $60.7 million loss incurred in the first quarter of the year. The company also saw its revenue grow by 14.7% from the previous quarter. The primary factor behind the year-over-year shift from profit to loss was an $18.8 million unrealized loss on its digital assets. This contrasts sharply with the $55.8 million unrealized gain reported a year prior.

During an earnings call, BitGo CEO Mike Belshe acknowledged that the financial results for the second quarter did not meet the company's targets.

“While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix,” Belshe stated. He further explained that the reduced margins were a result of “lower spreads on certain spot transactions” and a diminished contribution from derivatives.

In response to the performance, BitGo has initiated several financial strategies. The company announced its board has authorized a share repurchase program for up to $50 million of its stock. Additionally, BitGo anticipates that recently implemented cost-reduction efforts will yield approximately $15 million in annualized cash savings. These measures include a workforce reduction of about 15% that occurred in June, which is expected to lead to a decrease in expenses in the third quarter.

Following the announcement, BitGo's shares experienced a 1.8% decline in overnight trading, falling to $4.90. This came after the stock had closed Wednesday’s session up 0.6% at a price of $4.99, according to data from Yahoo Finance.