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

BitGo (BTGO) posted first-quarter revenue of $3.77 billion, marking an 113% increase year-over-year, primarily driven by digital asset sales totaling $3.7 billion—a 127.9% rise from the same period in 2025. The company’s net loss expanded to $60.7 million, more than doubling from the $25.7 million loss recorded in Q1 2025, due to non-cash bitcoin treasury write-downs and higher stock-based compensation tied to its January public offering. Bitcoin’s 23.8% quarterly decline to $66,699 directly impacted BitGo’s balance sheet, contributing to its financial challenges. The company generated $49.4 million from staking activities and $25.6 million from subscriptions, while its stablecoin-as-a-service division grew 43.6% to $38.2 million, fueled by institutional adoption of the BitGo Mint platform. BitGo introduced a new derivatives product in Q1, generating $3 billion in notional trading volume, a novel revenue stream absent in prior comparisons. However, adjusted EBITDA turned negative at -$1.7 million, down from a $3.9 million profit in Q1 2025, with a trailing 12-month gross profit margin of just 1.23%. Shares of BTGO fell 2.1% in after-hours trading to $11.91, down 36% over six months and near its 52-week low, despite a $1.37 billion market cap. Analysts project a 27% upside from current levels, with price targets ranging from $11 to $18, following its January IPO, which raised $212.8 million.