BitGo made $4.3 billion in revenue last quarter, but direct costs swallowed 99.8% of it
BitGo reported second-quarter revenue of $4.329 billion, up 79.6% year over year, but nearly all of the growth came from its Digital Asset Sales segment, where $4.198 billion of revenue was offset by $4.190 billion of direct costs. That left only a $7.1 million spread, highlighting how little of the gross revenue was retained. The company still posted a $17.4 million operating loss, a $19.0 million net loss, and negative adjusted EBITDA of $4.2 million. Management announced about $15 million in expected annualized cash savings and a June restructuring that is mostly complete. BitGo also said CFO Edward Reginelli will resign Sept. 15. Platform assets were $65.2 billion, down year over year on a reported basis but up when adjusted for price changes. The key issue is whether BitGo can convert transaction volume and asset growth into durable operating profit.
