BTGO

Interested in BTGO? Here are five stocks we like better. Revenue increased 79.6% year over year to $4.3 billion, but weaker trading margins and an unfavorable mix pushed adjusted EBITDA to a $4.2 million loss from a $3 million profit a year earlier. BitGo expanded normalized assets on its platform to approximately $65 billion and staked assets to about $12 billion despite a weaker crypto market, while staking and stablecoin-as-a-service revenue showed mixed but significant growth. The company expects cost-cutting measures to generate $15 million in annualized savings beginning in the third quarter and aims to approach adjusted EBITDA break-even; CFO Ed Reginelli will transition out of the role during the coming quarter. BTGO (NYSE:BTGO) reported higher second-quarter revenue and continued growth in assets on its platform, but lower trading margins and an unfavorable revenue mix weighed on profitability as digital asset markets weakened. Co-founder and CEO Mike Belshe said the company expanded normalized assets on platform to approximately $65 billion and normalized assets staked to approximately $12 billion, with both measures rising sequentially and year over year. He said BitGo gained market share during a quarter in which total crypto market capitalization fell 13%, Bitcoin declined about 14%, industry trading volumes dropped more than 20%, and volatility remained at multiyear lows. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “While revenue grew, lower margins and unfavorable revenue mix pressured profitability,” Belshe said. He attributed the pressure in part to narrower spreads on certain spot transactions, lower derivatives contribution, and changes in staking-client activity. CFO Ed Reginelli said total revenue reached $4.3 billion, up 14.7% sequentially and 79.6% from a year earlier. Direct costs were also about $4.3 billion, increasing 15.1% from the first quarter and 80.8% year over year. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand BitGo posted a GAAP net loss of $19 million, an improvement from a $60.7 million loss in the first quarter. The sequential improvement reflected a smaller unrealized mark-to-market loss on digital assets and lower compensation and benefits expense. The company recorded an $18.8 million unrealized loss on digital assets in the second quarter, compared with a $53.7 million loss in the prior quarter. Adjusted EBITDA was a loss of $4.2 million, compared with a $1.7 million loss in the first quarter and adjusted EBITDA profit of $3 million a year earlier. Reginelli said the sequential decline was primarily driven by lower economic contribution from digital asset sales and staking, partly offset by lower cash compensation and professional fees. Digital asset sales revenue was $4.2 billion, up 14.7% sequentially and 84.3% year over year. Digital asset sales margin was about $7.1 million, with the overall margin declining to 17 basis points from 32 basis points in the first quarter. Staking revenue was $64.7 million, up 30.9% sequentially but down 28.8% year over year. Subscriptions and services revenue was $27.5 million, up 7.7% from the prior quarter. Stablecoin-as-a-service revenue was $38.8 million, up 1.7% sequentially and 148% year over year. → Apple’s Next iPhone Could Test How Much Pricing Power Is Left Reginelli said derivatives notional volume was roughly $1 billion in the second quarter, down from nearly $3 billion in the first quarter. He said the company had seen some margin recovery in July and expected digital asset sales margins to move back toward historical averages of roughly 20 to 25 basis points. The company said it reduced its workforce in June and streamlined operations. It recorded a $1.3 million restructuring charge related to the reduction. BitGo expects the restructuring to produce $9 million in annualized savings, while other initiatives are expected to provide an additional $6 million of annualized savings, with the benefits beginning in the third quarter. Belshe said the other initiatives include repatriating node infrastructure to reduce public cloud costs and wider use of artificial intelligence in engineering and operations. According to Belshe, autonomous AI agents are fully resolving about 20% of engineering issues each month, while AI provides the first response for roughly 17% of inbound support tickets. He added that more than 40% of the company’s code is AI-generated or AI-assisted, subject to human review and custody-grade controls. Expenses excluding direct costs were $59.9 million, down 13% sequentially. Reginelli said the company’s goal was to bring the business closer to break-even or slightly profitable on an adjusted EBITDA basis in the third quarter, helped by revenue growth and cost reductions. Belshe highlighted BitGo’s efforts in tokenized securities, stablecoin infrastructure and quantum-risk management. He said the company provides wallet infrastructure for the Depository Trust & Clearing Corp.’s tokenization initiative, with the first U.S. transactions using DTCC tokenized assets processed in July ahead of the platform’s full production launch. The company also serves as the sole qualified custodian for the Canton Network and for Figure’s open-network tokenized equities platform, according to Belshe. During the call, Belshe demonstrated what he described as a tokenized entitlement representing SpaceX shares held at BitGo Bank & Trust, followed by a collateralized borrowing transaction using those tokens and SoFiUSD stablecoin. He said BitGo’s initial focus in tokenized equities is on building financial use cases such as borrowing against holdings rather than pursuing trading fees directly. Belshe also discussed the company’s quantum-risk tools for Bitcoin wallets. He said BitGo’s quantum resistance score allows clients to measure potential exposure using public blockchain data and move assets to fresh addresses while retaining ownership policies and security controls. He characterized the capability as an industry-wide security approach rather than a product intended primarily as a competitive upsell. For the third quarter, BitGo expects digital asset sales revenue and staking revenue to remain broadly consistent with second-quarter levels, assuming digital asset prices and market activity remain near recent levels. The company expects sequential growth in subscriptions and services, modest stablecoin-as-a-service growth, and lower operating expenses excluding direct costs. The company ended the quarter with $159 million in cash and cash equivalents, no corporate-level debt, and 2,523 company-owned Bitcoin valued at approximately $148 million at quarter-end. Its board authorized a share repurchase program of up to $50 million in June. BitGo also announced that Reginelli will transition from his role as CFO during the coming quarter. He will remain with the company to support an orderly transition, while BitGo said it would provide an update on succession plans at the appropriate time. BitGo Holdings Inc is the digital asset infrastructure company delivering custody, wallets, staking, trading, financing, stablecoins and settlement services from regulated cold storage. BitGo Holdings Inc is based in NEW YORK. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BTGO Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 5 p.m. ET Founder and Chief Executive Officer — Michael Belshe Chief Financial Officer — Edward Reginelli Michael Belshe: Thank you, everyone, for joining Bitgo's first earnings call as a public company. Since this is our first earnings call, I'm going to give a little more background on Bitgo than we will going forward. Some of you may have heard this before during the IPO process. So thank you for your patience as we go through it, but I want to make sure we're all starting from the same place. All right. So when we founded Bitgo over a decade ago, we wanted to create a company that could meaningfully contribute to accelerating the transition to a digital economy. At Bitgo, we believe that digital assets are already fundamentally reshaping the financial system and are going to continue to do so. The ongoing announcements and news from all major traditional firms from Fidelity to Morgan Stanley to SoFi demonstrate that this is true. Since Bitgo's inception, we've been building for a future where all assets will be digital. Early in my own crypto journey, it became clear that the infrastructure to support the shift to digital assets was nonexistent and the ecosystem was incredibly immature. Established financial institutions didn't have a compliant framework, secure custody or even institutional-grade security solutions to rely on. So we set out to build the technology to provide this institutional-grade infrastructure, which could elevate digital assets to a higher level. The product we created is now the industry standard, multi-signature threshold MPC wallets that protect against both theft and loss, and this is what Bitgo was founded on. While other early participants built retail products, we established our track record for building institutional-grade infrastructure. In 2014, we introduced enterprise policy controls to digital asset wallets. In 2018, we launched the first U.S. trust company purpose-built for digital assets. We expanded into prime services and liquidity in 2020 and became the first to support qualified custody under New York DFS framework in 2021. We built a globally regulated platform spanning the U.S., Europe, Asia and the Middle East. As you're probably aware, we recently received our National Bank Charter under the Office of Control of the Currency, OCC. That made Bitgo the first public federally chartered digital asset infrastructure company. And we scaled our business model support over 1,700 assets across thousands of institutions and over 1 million users. Through these accomplishments, we've continued to differentiate Bitgo in the broader digital asset industry. To start, we operate purely as infrastructure. We do not manage exchanges. We do not compete with our clients nor do we have the same kind of exposure to digital assets that retail platforms do. We exist to provide security and compliance that empower institutions to participate in the digital asset economy. Our institutional client base is investing in crypto for the long term and has proven itself much stickier and less impacted by short-term market cycles than retail users. It's also important to note that we didn't enter this industry during or because of a hype cycle. We were built and battle tested through many market cycles, fulfilling a growing and enduring need for our clients. Bottom line, Bitgo today is the digital asset infrastructure company, powering institutions, platforms and nations redefining the global economy, and we stand apart as the premier infrastructure provider. So you can think of us a bit like a hyperscaler for digital assets. We're a one-stop shop, multiproduct platform with institutional-grade infrastructure and mission-critical reliability that our partners can build and scale on regardless of where that takes us globally. We believe that no other company can provide the streamlined and comprehensive suite of solutions that we do. Institutions have been forced many times to piece together providers, opening themselves up to operational risk and increased inefficiency. Our vertical platform was built with security as the foundation and provides wallets, qualified custody, trading, staking, lending, settlement and compliance tools, all within one unified scalable infrastructure. Starting with wallets. These are developed in-house and integrated across our platform, driving client stickiness. We operate regulated trust entities globally and provide qualified custody under the most stringent and rigorous regulatory frameworks in the world. Our Go network allows clients to settle assets 24 hours a day, 7 days a week directly from cold storage, which is a significant differentiator. The liquidity services we offer enable institutions to trade, stake, borrow and lend without commingling assets. We're proud to have one of the largest institutional staking platforms in the world. Finally, we also provide Infrastructure as a Service capabilities. This includes token management, stablecoin issuance and crypto as a service. To briefly recap our most recent results, I'm proud of the impressive revenue growth of 424% we achieved for the full year, driven primarily by digital asset sales and gains in subscriptions and services, partially offset by a decline in staking revenue due to digital asset prices. Obviously, Bitgo is a long-term believer in digital assets, and we evaluate our business performance independent of short-term price volatility. So rather than solely citing the USD value of assets on platform, which fluctuates with market prices independent of our business activity, we'd like to also share coin unit growth and price normalized growth that more directly reflect Bitgo's performance rather than the market's pricing. On a unit basis, BTC on platform grew 8% year-over-year and our top 5 assets by volume grew 3% year-over-year, growth driven entirely by client inflows, not market price movement. On that normalized price basis, assets on platform grew 16% year-over-year. Asset states declined 7% on the same basis. This is a trend we continue to monitor as certain tokens unlock over time. We believe these normalized figures represent Bitgo's strong performance in an otherwise very volatile market. Moving on to our growth strategy. Our platform operates at the center of the digital asset ecosystem with each new integration, new asset and new user making Bitgo more useful, more defensible and more essential. When protocols, fintechs and issuers build on Bitgo, they bring assets and transaction volume onto the platform. That, in turn, increases demand for liquidity, staking services, financing solutions and compliance infrastructure. Growth in assets and flows naturally gives greater engagement across our product suite. And as we expand functionality, whether through new asset support, prime capabilities or infrastructure services, we increase cross-sell opportunities and deepen our client relationships. The result is a scalable platform model that underpins our growth strategy, driving market expansion, client growth and product expansion that reinforce one another, contributing to revenue growth over time. Now starting with market expansion. We are actively replicating our product in markets globally to ensure that we can serve clients wherever they operate. In 2025, we made more regulatory progress in international markets, notably expanding our license in Germany and becoming custody broker in Dubai. At the domestic level, our OCC license supports our expansion in the U.S. and allows us to provide digital asset services to clients across all 50 states under a single national regulatory framework. In 2026, we are actively expanding into additional regions with several new licenses and registrations already in progress in India, South Korea, the U.K. and the Cayman Islands. We see the biggest opportunity for expansion this year in the APAC region, which represents a significant share of global crypto liquidity and has already established regulatory frameworks for digital asset custody and infrastructure. These markets are seeing increased engagement from banks, asset managers and family offices exploring digital assets, stablecoins and tokenized financial products. Because Bitgo already has a strong presence across several of these hubs, we're well positioned to support institutional clients and adoption as it accelerates demand for regulated client custody, settlement and prime services. On to client growth. We've seen tremendous growth in our client base over time due to a number of factors. In 2025, we saw benefits from expanding internationally, which has helped us win more global clients. In 2026, we are focused on expanding Bitgo's role in institutional market infrastructure by increasing our market share in OTC and derivatives while continuing to build next-generation wallet capabilities. At the same time, we're also investing in agentic wallet infrastructure that enables programmable, automated interactions with digital assets, supporting more sophisticated trading, settlement and treasury use cases for institutional clients. Finally, product expansion. During the first half of 2025, we launched our Stablecoin as a Service and our crypto as a Service. We started as the issuer for USD1, which has grown to over $5 billion in market cap since its launch, making one of the fastest-growing stablecoins of all time. We also announced recently that SoFi selected Bitgo's Stablecoin as a Service platform for their SoFi USD stablecoin. Further, we started off 2026 with the launch of our derivatives business, which we believe substantially improves our trade offerings for 2026. So far, we've seen roughly $3 billion in notional trading volume and over $3 million in revenue. We also see opportunities to expand our lending and trading offerings as well as enter tokenized equities as real-world asset tokenization has surpassed $25 billion as of July 2025. Looking ahead, we believe growing regulation of the digital asset industry in the U.S. as evidenced by the passage of the GENIUS Act and ongoing discussions on the CLARITY Act positions us well to increase our total addressable market. As more regulation is in place, we expect to see more traditional firms come to us looking to get involved in the digital asset industry with solutions that are secure and safe. We're seeing this now with our ecosystem team in support of the Canton network, a blockchain designed for traditional finance, where Bitgo has been the sole qualified custodian for some time. All these efforts will help power our product expansion strategy. We also secured exciting partnerships in 2025 that meaningfully raised our profile, including with Fidelity and Bitcoin. We started 2026 off strong. We're supporting Investify with nationwide digital asset investing for banks and credit unions. We're selected for custody and staking with Fidelity's Solana ETF as well as being named for the Bitcoin ETF, and we are accelerating our global ETF partnership with 21 shares. This is a particularly exciting opportunity as we've seen ETF client count grow over 200% year-over-year. Finally, we can't ignore what's coming with tokenized equities. We see several models emerging to tokenize traditional U.S. equities and all of them require the infrastructure that Bitgo has been building. We're proud to be the custodian on the Figure platform, which launched earlier this year to directly issue equities on blockchain through Figures open network. To conclude, I'm proud of our achievements in the fourth quarter and full year 2025, and I'm incredibly excited about the start of our journey as a public company. Being public adds another layer of rigor to our business as we continue to operate with transparency and security. We also believe that access to public markets reinforces Bitgo as the steady-state infrastructure player for institutions. I'm confident Bitgo is uniquely positioned within the crypto industry as the digital asset infrastructure company, and we have the right strategy in place to drive growth and deliver significant value for our shareholders. Finally, I want to thank the Bitgo team for their continued hard work and dedication to our company and mission that's made executing our IPO and achieving our strong financial results possible. I now turn it over to Ed. Edward Reginelli: Thank you, Mike, and thank you all for joining us today. Before reviewing our financial performance, I'd like to build on Mike's discussion of Bitgo's growth drivers and connected to how we generate revenue. Bitgo makes money through 5 revenue drivers: digital asset sales, staking, subscriptions and services, Stablecoin as a Service and interest income. Starting with digital asset sales. We offer a secure, seamless liquidity solution that simplifies the complexities of digital asset trading. Our revenue reflects the total trading volume generated when the company acts as Principal, executing trades on behalf of clients through relationships that Bitgo has with various third-party liquidity providers and exchanges. Second, we earn staking revenue by participating in proof-of-stake blockchain networks where we validate blocks using either our proprietary staking technology or by partnering with our network of 25-plus leading third-party validators. In exchange for providing clients the ability to stake their assets, the company earns blockchain rewards in the form of the network's native tokens. Third, subscriptions and services revenue encompasses our core technologies. Wallet services, cold storage, development fees, lending services and crypto as a service. This service is very sticky and provides stability and predictability in our financials because our technology is highly integrated into our clients' operations. This relationship provides the opportunity to upsell additional products and services. Fourth, Stablecoin as a Service revenue, which is our newest product offering, launched in fiscal year 2025. This service allows institutional clients to issue U.S. dollar-backed stablecoins using our regulated trust infrastructure. We earn implementation and ongoing service fees for the issuance, reserve management and transaction processing of white label stablecoins. Lastly, interest income, which represents interest earned from the company's fiat treasury earned from deposits in various money market products. While we are not entirely immune to market volatility, our diversified revenue model helps insulate us from fluctuations in digital asset prices relative to others in the industry. In addition, a meaningful portion of our revenue is recurring and subscription-based and our performance is driven by a broader set of factors beyond asset prices, including interest rates, industry sentiment and continued investment in emerging ecosystem and products. Finally, our focus on institutional clients results in a stickier customer base, especially through periods of market volatility. Moving on to our results. Fourth quarter total revenue of $6.2 billion increased 440% year-over-year. For the full year, total revenue of $16.2 billion increased 424% year-over-year. Growth in both periods was driven by higher digital asset trading activity, increased subscription and service revenue and the launch of our Stablecoin as-a-Service offering, alongside deeper engagement from existing clients and continued expansion of our client base. This growth was partially offset by a decline in staking revenue due to lower digital asset prices. On our key operational metrics, as of the end of the year, number of clients grew 104% year-over-year to 5,322 and number of users expanded 14% year-over-year to 1.2 million users. Assets on platform of $81.6 billion decreased 9% year-over-year, while assets staked of $15.6 billion decreased 51% year-over-year. These declines were driven by lower digital asset prices. To reiterate what Mike noted earlier, excluding the impact of price by applying consistent pricing across periods, assets on platform increased 16% year-over-year, while assets staked decreased only 7%. On a product level, in the fourth quarter, digital asset sales of $6.0 billion increased 531% year-over-year. For the full year, digital asset sales were $15.6 billion, increasing 513% year-over-year. Growth during both periods was driven by higher digital asset trading activity resulting from the continued growth of our OTC services, the expansion of trading pairs on the platform, increased activity from existing clients and an expanding client base. With digital asset sales, there are corresponding transaction costs. In the fourth quarter, digital asset sales costs were $6.0 billion, resulting in a take rate of roughly 24 basis points. For the full year 2025, digital asset sales costs were $15.5 billion with a take rate of approximately 21 basis points. Staking revenue in the fourth quarter of $58.3 million declined roughly 64% year-over-year. Full year staking revenue of $385.0 million decreased 16% year-over-year. Decreases across both periods were primarily driven by volatility in digital asset prices. Similar to digital asset sales, staking revenue includes corresponding fees. In the fourth quarter, staking fees were $55.4 million, resulting in a take rate of roughly 7%. For the full year 2025, staking fees were $346 million with a take rate of approximately 11%. Subscriptions and services revenue in the fourth quarter of $39.3 million increased 75% year-over-year. Full year subscriptions and services revenue of $121.5 million grew 57% year-over-year, primarily driven by an increase in the number of clients, growth in development fees and higher lending activity. Custody and wallet solution clients increased to 1,534 with an average quarterly spend of [indiscernible] per invoice client. In addition, we exited the year with a lending book of approximately $207.4 million, representing an increase of 114% year-over-year. Stablecoin as a Service revenue was approximately $26.6 million in the fourth quarter with a take rate of approximately 20 basis points on assets under management. For the full year, revenue totaled $66.7 million with a take rate of approximately 16 basis points on assets under management. As a reminder, this service was launched in fiscal year 2025. Finally, interest income was $0.5 million in the fourth quarter, up 34% year-over-year. For the full year, interest income totaled $1.5 million, up 63% year-over-year, primarily driven by increased fiat treasury investments. Total expenses were $6.2 billion for the fourth quarter and $16.1 billion for the full year, principally driven by digital asset sales costs, staking fees and stablecoin sponsor fees as referenced earlier. Fourth quarter compensation and benefits were $27.9 million, up roughly 19% year-over-year and $104.2 million for the full year, up 30%, driven largely by continued investment in our engineering and commercial teams. Fourth quarter general and administrative expenses were $24 million, up 29% year-over-year and $76 million for the full year, up 44% year-over-year, primarily reflecting increased third-party costs associated with our IPO initiative, higher legal expenses and variable costs tied to customers and revenue growth. Net loss in the fourth quarter was $50 million compared to a net income of $129.4 million in the prior year. Net loss for the full year was $14.8 million compared to net income of $156.5 million in the prior year. Losses in both periods were primarily driven by unrealized losses on the company's digital asset treasury due to falling digital asset prices. Fourth quarter adjusted EBITDA of $12.1 million increased 188% year-over-year, while full year adjusted EBITDA of $32.4 million grew 904% year-over-year. We believe we are in the early stages of growth, and our priority is to accelerate revenue while expanding our product capabilities and global footprint. We will continue to make disciplined long-term investments to support these objectives, even if they temper near-term profitability. Fourth quarter diluted loss per share was $1.03 compared to prior year earnings per share of $1.07. Full year diluted loss per share was $0.38 versus earnings per share of $0.90 in the prior year. Moving on to our balance sheet. Our balance sheet remains strong as we ended the year with $318.5 million in total equity. Our balance sheet includes a Bitcoin treasury strategy under which we retain Bitcoin received or acquired in the ordinary course of business and at times, allocate cash flows to purchase additional Bitcoin. We remain confident in this strategy and our long-term approach remains unchanged. Looking ahead, we are committed to a balanced capital allocation strategy over the long term. As we invest to grow the business, we will remain disciplined in the way we allocate capital and operate as a business in order to minimize risk and maintain liquidity. As of December 31, 2025, total diluted shares outstanding were 119.9 million shares. As a reminder, we issued an additional 11 million shares in our January 2026 IPO. We hold no long or short-term debt on our balance sheet since any borrowings are primarily used to fund our lending business and are on a demand basis. Now turning to expectations for the first quarter of 2026. We've been operating as a publicly listed company for about 10 weeks. And while the quarter is not complete yet, we want to be transparent and share insights into the current market conditions. The macro environment in the fourth quarter was challenging, and those conditions have carried into the first quarter. Digital asset prices have remained under pressure and geopolitical tensions in the Middle East have added additional volatility. These macro conditions, along with the decline in digital asset prices have a direct impact on our revenue streams. We are not immune to these dynamics. With that said, our underlying unit-based metrics remain healthy. Our client pipeline is strong and the structural demand for our platform remains intact. As Mike noted, we are executing on our 2026 growth strategy and continue to see strong growth in our client base and pipeline. In our trading business, we expect strong year-over-year growth in the first quarter compared to Q1 2025, supported by the momentum built during fiscal year 2025. We launched our derivatives business in the first quarter of 2026. As spot trading volumes have declined from the fourth quarter of 2025 amid lower digital asset prices and market volatility, client interest in derivatives has increased as a way to generate yield and provide market downside protection. Please note that a portion of our existing spot trading activity is transitioning to derivatives. While spot trading volumes are reported on a gross basis, derivative trading is reported on a net basis. Other areas to highlight include continued growth in our Stablecoin as a Service business, where assets under management exceeded $5 billion during the first quarter, alongside the addition of new notable clients utilizing the service. We expect solid year-over-year growth in subscriptions and services in the first quarter compared to Q1 2025. However, revenue is expected to be lower than the fourth quarter of 2025, primarily due to a decline in development fees, partially offset by strong recurring revenue base from custody and wallet services and increased lending business. Staking fees, which are most directly impacted by digital asset prices are expected to be significantly lower in the first quarter compared to Q1 2025 and down sequentially from Q4 2025. However, we anticipate a meaningful improvement in take rate relative to Q4 2025, driven by the onboarding of a significant token. Bitgo has been around since 2013, and we have experienced many different market environments over the years. I remain confident in our ability to weather the current dynamic macro environment as our near-term opportunities are strong, underpinned by a deep client pipeline and several active projects. With a constructive and evolving regulatory backdrop, we continue to see strong momentum and remain positive on the digital asset industry as a whole. To close, we are pleased with our strong fourth quarter and full year 2025 results, which position us well to continue executing on our long-term growth strategy. We remain confident in our ability to drive client growth, asset growth and product expansion and to deliver long-term value for our shareholders. Thank you for joining us today. I'll now turn it over to the operator for our Q&A session. Operator: [Operator Instructions]. Your first question comes from George Sutton with Craig-Hallum. George Sutton: Congrats on your first quarter. So I wanted to ask on the CLARITY Act, Mike, in terms of -- obviously, we're starting to get some sense of what that might look like. I'm just curious if we could use your informed thought process on what you'd like to see or what you're expecting to see relative to how it will impact your business. Michael Belshe: George, thank you for the question. Let's see. We're excited to see CLARITY pass. We hope that it comes about. I know there's been a lot of debate in the industry about, in particular, some of the relitigation of stablecoin points. From my view, most of the work with CLARITY actually comes in the next 18 months after CLARITY is passed because what it sets up is okay, CFTCs can do most of the work in the regulation. And that's going to really determine the bulk of what matters. So we hope that it passes soon. I would take it in almost any form. I don't think we should be worrying about the interest that's being returned or not returned. I think we need to get to the next stage, which is getting this fully enacted and legislated so that we don't have to worry about whether we have a full path forward from Congress. So we're very much in favor of getting CLARITY passed, and I think we're at the finish line. George Sutton: There was a lot of reference to a very strong client pipeline. I wondered if you could just give us any more sense of what you're seeing from a pipeline perspective. And how much of that is TradFi focused? Michael Belshe: Great question. Glad you asked. So look, I mean, you're reading announcements almost every week, Morgan Stanley, Citibank, et cetera. All of these large major players were not participating in digital assets just a short 18 months ago. And with infrastructure, I think you also know that it goes through a pretty significant amount of process. It goes through an RFI, then it goes through some iterations to an RFP and then finally to a close. So we can't announce everything that's done until the client wants to announce it. But the pipeline has been super strong. And in fact, if anything, I just want to make sure that we have enough sales team out there to make sure that we're connecting with everybody that we need to. So we've been growing the sales team over the last 3 to 4 months, just there's a lot of work out there. Operator: Your next question comes from Brett Knoblauch with Cantor Fitzgerald. Brett Knoblauch: As we look at maybe the broader crypto space, obviously, there's some weakness here. In your prepared remarks, you guys said you guys are a bit different of a platform and business isn't entirely correlated to where digital asset prices are going, but then also alluded to the fact that lower digital asset prices will weigh on some of the segments. Can you maybe frame it a bit better, like which segments are you expecting to kind of be pressured with, call it, broader crypto down 20% year-to-date versus which segments do you think can grow strongly irrespective of, call it, the macro market for crypto? Michael Belshe: Yes. Thanks, Brett. Good to hear from you again. Let's see. I mean, in general, I don't want to sugarcoat it, right? Like the asset prices being down, it affects everybody in the sector. And I think we said during the IPO roadshow, I will say it again, like Bitgo has some amount of correlation to digital asset prices, and you kind of see it in many aspects of our business. We've got a few that are less correlated. One of them is stablecoins, of course. Those are not directly correlated to the crypto prices. The other one is trade volume, which we sell a lot of trade volume in up and down markets, those volumes will increase. So it's not a direct correlation to just the asset prices. But of course, it is a direct correlation to what's going on in the space broadly. Lastly, we do have subscription service -- subscriptions as part of our services. So sometimes people are buying a subscription, which caps a monthly minimum, which includes some amount of custody, some amount of trade volume, et cetera, transaction volume, all under a constant price. So it's a little bit less volatile than the digital asset prices. Brett Knoblauch: Awesome. And then maybe just as a follow-up, you mentioned like agentic wallets, which I think is a really interesting area and kind of a hot topic right now. How do you -- or how are you guys kind of positioned for that with respect to your subscription services product? Is it a different bundle? Is it included in maybe the same package? Just broadly, how should we think about maybe just agentic wallets and Bitgo together? Michael Belshe: Yes. Great. Well, actually, we think the product offering that we have is really well suited actually for all of the Agentic needs and capabilities. So we got our MCP server up by the way we've seen it, like where AI picks up on that and is able to help put together products and code on it. We're watching that carefully to make sure that we fully understand exactly what clients are looking for, and we react to that as quick as we can. Then in terms of why our products are kind of designed for this. I mean when we started doing our institutional-grade wallets back in the beginning, I mean, first, you've got the basic security components, which is how do you have no single point of failure, how do you have protection against loss. But then the next thing you're doing is you're making it work for an institution, a business, a group of people, right? And so there's multiple people on the wallet. There's a policy that you can set. You can say, hey, these types of accesses need these permissions, the other types need these other permissions, you can do it risk-based. This turns out to work really well with agents, right? So the agents are effectively like other participants on the wallet. And you can actually do it in both directions. You can both have the agents spending money on your behalf and then going through your controls to approve. And also, you can do the reverse where you're doing the spending of money and then the agent is kind of watching that. So if you have a large organization and maybe you've federated out different parts of your digital assets to multiple parties, that agent can put other controls on it that you can watch and then they'll decide whether or not to improve. So anyway, I think everything we've built is like perfectly in line for agents. And if you are looking for an agentic wallet, like please try out Bitgo, give us feedback. We are always iterating and improving. Operator: Your next question comes from Joseph Vafi with Canaccord. Joseph Vafi: Congrats to you and to Bitgo on getting to this stage of the journey in the company's evolution. Maybe just staying on the agentic for a second. I've been kind of noodling what's going to move the industry forward other than just spot prices. And I think everyone's been thinking that clarity could be a big driver, but agentic AI combined with programmable money and assets and blockchain are kind of all coming into view here. Do you think that agentic could move the industry forward faster than CLARITY? I'm just trying to get a view from your point of view and then a quick follow-up. Michael Belshe: Well, thanks, Joseph. I think it's a little bit apples and oranges. I think they'll move in different speeds. So first off, on CLARITY, I didn't quite say this in my previous answer. Having done the roadshow, having spoken to all kinds of potential investors, many of whom have not been in the digital asset space very much kind of prior to the unlock of 2025, all of those guys are looking for CLARITY to kind of be the permission that this is not just something where like under the Biden administration, you have one set of regulators and then under the Trump administration, you have a different set of regulators. And under the next administration, we're going to have yet a third set of regulators, each with their own agenda. CLARITY puts a pathway forward where Congress has said, yes, they support this, and they've asked the regulators to officially take on that thing. So I believe there's a significant amount of traditional finance that is very much waiting on CLARITY. And if CLARITY doesn't come through, those folks may be kind of in and out as the market goes up and down. So that's a risk. Let's see, on the agentic side, I think we're going through an early phase where people are learning how to use agents. You see some of the almost [indiscernible] that happens where we're all learning it. We're so excited about it, and yet we're not quite as productive as we hope that we will ultimately be. So I think the innovation and this kind of exploration wave is just starting. Clearly, there are going to be very -- a lot more robots than there are humans, a lot more AI brains than there are human brains. And so I think it's only natural that you will see agents operating on our behalf in all kinds of ways. But we're in the early days of figuring out how those get deployed. So both CLARITY will help us and agents are going to help us grow, but I think they're almost as different paths. Joseph Vafi: All right. And then any other thoughts Ed here? It sounds like take rate may go higher on staking due to adding a new token. Any other color that you may be able to provide there? Edward Reginelli: Yes. So -- on the staking side, we did add a significant token. Canton was the asset we added, and that has brought a tremendous amount of margin to the product line. Also on other product lines, including our trading business, we referenced earlier in the conversation about the introduction of derivatives, and that has been really successful in Q1. So that's also going to help improve margins. And then as we continue to grow our overall customer base, we'll get incremental revenues from subscriptions and services. The difficult part of the business right now from a revenue perspective because it's so tied to digital asset prices is our staking product line. But we still are very confident in that overall product line and expect that to continue to grow. We'll grow adding new assets to the platform, more units. And hopefully, we see a recovery in prices. Operator: Your next question comes from Brian Dobson with Clear Street. Brian Dobson: Congrats on your first quarter. So maybe we can take a step back and a longer view. As you're contemplating, say, the next year or 2 for the business, which global catalyst do you expect to be most meaningful for the company and call it, the sector at large? Michael Belshe: Sure. There's a lot of questions about like digital asset prices. One thing that we're trying to help describe and always open to feedback on this as well is how do you differentiate how the market performed versus how Bitgo performed. And so the reason we were citing earlier, if you take a look at assets under custody from a normalized price perspective, you can either do it normalized at the beginning of the period at the end of the period, it doesn't really matter. Our assets under custody grew 16% during this year, irrespective of the asset price on the market. So hopefully, that indicates we're doing something right. It's not easy to add billions of dollars of new asset into custody. And then where is that next thing going to come from? Look, I think mostly, it's that the TAM is growing. So the regulatory unlock of 2025 started with just what was now legal in the U.S. to do. The second unlock is the increase of participants in the space. And so kind of back to that comment earlier about pretty much every traditional financial firm has a significant investment in digital assets going right now. You've heard me say this before. Larry Fink of BlackRock says every asset, every bond, every token is going to be digitized. I think there's an increasing number of people that believe that. We just had Paul Atkins this week also saying that within 2 years, everything is going to be digital. So this is just a huge growth in the total addressable market for us. And we think as an infrastructure provider, we will be able to serve those clients, whether you're talking about self-custody, whether you're talking about custody, whether you're talking about financial services on top. Operator: Your next question comes from Pete Christiansen with Citibank. Peter Christiansen: Congrats Mike, Ed, Baylor on the successful IPO. I wanted to ask about attach rates. You've had some really impressive client growth over the last couple of quarters. I'm assuming a lot of that is custody led. Can you just give us a sense of how you're seeing the attach rates to some other services, in particular, maybe like prime brokerage, how you're seeing that trend? And then I guess as a follow-up, I want to double tap on TV a little bit. How should we think about Bitgo's competitive moat there? Is it, hey, we've got best-in-class capabilities and it also stretches on to our custody capabilities, what have you? -- but there's other players out there that may have bigger balance sheet. Just help us understand what is the competitive strategy there to grow some of these other ancillary services. Michael Belshe: Sure. Thanks, Pete. I'll take part of this, and I'll hand it to Ed for the attach rates afterwards. So look, I mentioned custody, and I always kind of hate mentioning custody because I don't want people to think of us as just a custodian by any means. We've had significant attach rates across the product lines. I think Ed's got the official stats, but we're really trying to move all of the revenue up the stack. And so that's why we care a lot about the trade volumes increasing significantly on Bitgo. So increasingly, we hope to move as many participants up there. I think when you're helping people make money, whether it's by trading, whether it's by staking or by using their assets, it's a much stronger position to be in. So as it relates to prime brokerage, look, the lending book is larger than it's been in the past. The trading volumes are up. The culmination of these 2 things is where you start to put together and build leverage for your clients. Right now, I'd say that we're still increasing kind of these individual services and then ultimately, we get to prime brokerage. As the competitive moat, I think the difference is a couple of things. A, we have the foundation at the bottom of the stack, which you can actually build on and understand the risk. A lot of prime brokerage is understanding what are the risks that you're taking and too much of the early prime variance that came a few years ago from various players was not adequately taking into account what the risk that's being taken is. Obviously, if you don't have custody -- if you don't have a solid risk around how you're holding it, it's difficult to even talk about like the market risk and counterparty risks that happen on top of it. So we have that strong foundation at the bottom. The fact that our trading volume grew so well in the last year as we finally have turned that on, partially just unlocked by the new regulatory environment here in the United States. We think all of this grows. So we are differentiated in that we do cold storage for that. We've got a solid foundation for that. We support more coins than anybody. I think we have some stats coming out probably in some press releases soon around just how broad the asset support is. I think when you look at other players, they're probably going to start with Bitcoin, they're going to start with Ethereum. And look, Bitgo supports just a much broader spectrum of products today. Ed, do you have the specific numbers on the attach rates on the various services? Edward Reginelli: Yes. So I believe as of end of last year, about 70% of our revenue-generating clients use 2 or more of our products and about 50% use 3 or more. As Mike pointed out, the clients are really focused now on yield-generating activities, and they would much rather be sharing some of those profits compared to just paying for stand-alone services. So we'll continue to keep driving customers of our products stack. And we also appreciate that, too, from the standpoint of increasing our margins. Instead of talking basis points, we're talking percentage points. So we're actively trying to move more and more clients to trading staking, lending and other value-added products that we currently offer. Operator: Your next question comes from Edward Engel with Compass Point. Edward Engel: Could you please talk about the launch of derivatives trading in the first quarter? It looks like it's been a strong start so far, but just wanted to get a better idea of when exactly that was launched and then, I guess, how you see that ramping throughout the year? Michael Belshe: Yes, sure. Yes, we're very pleased with how it's been going so far. Actually, let's see to [indiscernible] say here. Okay. I don't think so. All right. We launched on January 1. And one of the things that, by the way, I want to note you've got this terrible way of like aggregating gross revenue, which includes gross trading of spot then derivatives, of course, is not quite equivalent to trading volume. It's equivalent to the derivatives component. So it makes it hard to tease out. But we've seen substantial clients moving from pure spot trading over to derivatives. We've seen multibillions of trade volume already in 2026, and we just launched it, I guess, 3 months ago. So we think this is where the bulk of our trading volume will be probably in about another year or so, but very happy to be having this offer to our clients. Edward Engel: Great. That's helpful. And then just to try to sneak one in here. Just given that successful launch and then maybe just some of the recent volatility -- is there a world where we could see net trading revenue maybe kind of flat Q-on-Q? I know you said higher year-on-year, just that 1Q is a pretty low base. Michael Belshe: Ed, do you want to take this? Edward Reginelli: Yes. We are projecting that our overall gross trading volume will be down. On a net basis, we will also be down quarter-on-quarter, but will be up substantially versus Q1 of 2025. Q4, we appreciated the benefit of a lot of digital asset trading companies, treasury companies that came to the platform, and we had a tremendous amount of volume through them. What we've seen there is behavior changing. Those same clients are now using our derivative products, looking for yield, looking for market protection. So overall, we are very positive on our trading and derivative business and expect that to be a huge driver of our future growth. Edward Engel: That's great color. Congrats on being a public company. Operator: Your next question comes from Brian Bedell with Deutsche Bank. Brian Bedell: And also congrats on your first quarter here. Very exciting. First question, just on the -- going back to some of your comments, Mike, on CLARITY Act and the pipeline. How do you see that progressing during the year? Obviously, you mentioned that the CLARITY Act can be an unlock for traditional finance firms. And the pipeline is strong coming into 1Q. But do you see this being actioned upon relatively quickly if just the Act passes? Or do you expect more of a lagged response as we go throughout the year? From a revenue perspective, I'm thinking about the custody wallet component of subscription and services. Michael Belshe: We have not seen any slowdown in terms of readiness to adopt digital assets from traditional financial firms. If anything, I'd say it's been just as strong. So I think most people had been expecting CLARITY would get passed kind of over the last 3, 4 months. Maybe the -- probably market would probably tell you exactly what the predicted odds are, maybe that's come down a little bit, but it doesn't seem to have slowed anything down. And I'm not entirely sure that just because we don't -- that even if we didn't get CLARITY, I'm hopeful that it will, but even if we didn't, that it would cause a slowdown. It could. But I guess I just don't know exactly. So far, there's been no slowdown. So I think it's all positive. Remember, these build-outs take a long time, like the decision process for large firms moving into digital assets, the decision alone is 6 to 12 months. After that, there's the build-out and then there's finally the deployment. And usually, when they deploy, they do it kind of on a risk-adjusted basis where they do a small amount first and then grow it slowly. So because they've already started the process, I think it takes a while before they drop out. But I guess we're going to see exactly how they go. So far, it's been no problem. Brian Bedell: Yes. That's great. And then maybe an interesting press release on the Prediction markets venture. And it certainly seems like a differentiated way to go about the market. Can you talk a little bit more about that in terms of the OTC platform and how that -- you expect that to work? Is that going to sit at Bitgo? And then just talk about what types of contracts you're creating? It sounds like it's mostly in the crypto asset class right now. And how you're seeing that institutional demand play out? Michael Belshe: Sure. I think you're referring to our partnership we just announced with Susquehanna, right? Brian Bedell: Yes. Yes, that's absolutely, yes. Michael Belshe: Yes. For those that may not have seen it, we did announce a partnership with Susquehanna that -- you can have your assets at Bitgo and then we can -- through our OTC capabilities, we can help you place investments over at Polymarket and Kalshi, and we do that in partnership with Susquehanna. Look, that's just started. So I don't have any positive data that -- positive or negative to share with you just yet. We did have a lot of reach out and excitement about it. I think it creates a differentiated way to access these markets that wasn't there before. So look, we're excited to see what happens. Why don't you refresh that one for maybe the next quarterly report. Operator: Your next question comes from Dan Dolev with Mizuho. Dan Dolev: And also congrats from our end at Mizuho. Really quick question for you. It sounds like Stablecoin as a Service has been a huge success. I think you -- you recently launched it in the first half of '25, and it's already grown to like a very significant AUM. I think you mentioned $5 billion. So how big could this become? And what are maybe potential new ways to monetize beyond what you're doing today? -- congrats again. Michael Belshe: Great. Thank you for the question, Dan. Yes. So we started with USD1 last year. We helped them get from 0 to fully launched in about 6 weeks on top of the Bitgo Stablecoin as a Service product. It's a modular service. So you can kind of pick and choose some of the components that go into that. We announced just earlier this year that SoFi USD is going to be built on top of the Bitgo Stablecoin as a Service platform as well. I think that will be -- the first Stablecoin as a Service platform, I'll probably get to $1 billion each. SoFi is not there yet, but I think it will be the next one. We think there's tremendous opportunity. Like stablecoins are super easy for pretty much everybody in finance to understand. And in terms of payments, it's just better. I know there's some debate that's going on at the CLARITY Act, whether or not interest gets passed or not, there's a tremendous amount to be done here. So as the payment rails change, that changes how people are moving money locally and internationally, especially if you ever try to wire money internationally, it's very hard. People are opting to use stablecoins. You're going to start hearing like regular people outside of the business talking about, hey, I want to use some tether to send some money to a supplier across the globe. These are real things that are going to happen. At Bitgo, we've got increasing improvements around what we call our mint and burn dashboard, our ability to convert between these stablecoins, so we're going to have kind of an explosion of different stablecoins available and people might have some USDC, but they want to move to USD1. They got some USDT, but they want to move that to SoFi USD. And on the banking side, we haven't even seen the tokenized deposits quite come live yet. If you read up on the SoFi dollar, you can see how they're addressing the combination of both tokenized deposits and stablecoins. So I think we're in the early innings here. I think it's going to completely revolutionize how we're doing payments. I think you're going to see a use for settlements kind of everywhere. And then that will carry over, hopefully, into our Go network in the coming quarters. Operator: Your next question comes from Chris Brendler with Rosenblatt Securities. Christopher Brendler: I also add my congratulations on your first quarter out of the gate. I wanted to ask about the OCC approval process. I think it's now complete, but what does that mean for your business? And sort of which areas can you leverage that new charter? And it seems like it's somewhat unique as well. So it could be a competitive advantage, at least in the near term. I'd love to get a little color there. Michael Belshe: Yes. Thanks, Chris. Yes, for those that didn't notice, we did get converted over to the OCC National charter. So it's Bitgo Bank and Trust at this point. And it's been huge for our business actually. Now interestingly, from an operational point of view, we've been ready for this for quite some time. You probably know we operate multiple regulated custodians around the planet. We've had a couple in the U.S. We have in Switzerland. We have in Germany, we have in Dubai. We have in Singapore, coming hopefully in 2026 in South Korea. So we've built a playbook for how you run these that incorporates, of course, all of the U.S. things that you would expect, but also all of the things from other regulatory regions, et cetera. And I think we've got the most robust custodial platform of anybody in terms of being on top of all the regulatory components. Just being able to call yourself Bitgo Bank and Trust, actually, you're speaking the language of traditional finance. You say the word Bitgo it doesn't say bank in it and people don't quite know exactly what that is. Believe it or not, that does matter. But overall, you can't get a more respected regulatory framework. So it's been great. And of course, it cuts out any ambiguity. I see a few different states are looking to potentially try to regulate stablecoins in their own way, and we could end up with kind of the money transmission licenses of the states, but now it played out for crypto or played out for stablecoins. And by having that national charter, we are immune from that. So it's very good for our business. It's very good for our clients. And I'm proud that it shows that the Bitgo team has met the highest standards that are required. And one last thing that's interesting, we are a fiduciary for our clients' funds that are held at Bitgo Bank & Trust. And when you take a custodial duty over 100% reserve accounts, like what we do, that's fiduciary. Interestingly, when you go to roll up to your bank, he's not a fiduciary to you. It's a depository, it's a different relationship. So we think this is the right relationship for holding on to billions and billions of dollars of assets. Our clients do seem to value it, and it's been really good. One last thing, our crypto-as-a-service product has really taken off in 2026 already. We signed more new clients on crypto as a Service this year than we did all of last year. And we're only 3 months in, I think the OCC charter had a lot to do that. Christopher Brendler: That's fantastic and really looking forward to seeing how that progresses throughout the year. A separate question sort of related to the last question, which is on the Stablecoin as a Service, really great to see the SoFi news. I would love to hear just that pipeline because it feels like stablecoins is an area where it's not as impacted by crypto asset prices volatility. It's not as impacted by the regulatory environment since GENIUS Act is already done, although the interest exemption that fight might have a little bit impact. But I'd love to see more and more stablecoins being issued through Bitgo. And how does that pipeline look as you enter 2026? Michael Belshe: Yes, there's been a number of others. We haven't mentioned them as much because they're not as big of brands, but FY USD launched on top of Bitgo Stablecoin as a Service as well as a few others. There's a healthy pipeline more. Also the conversion component between all these different stablecoins is an area that we've been growing partnerships with some of the existing players everywhere from PayPal to Fidelity. Then in terms of how this grows, there's an interesting point that goes with CLARITY. If you're not allowed to get interest on stablecoins, then it kind of encourages everybody to want to be an issuer. Imagine your role as a bank or a business, you've got some distribution channel of parties and you want to use stablecoins, you've got 2 choices, either use an existing stablecoin, in which case somebody else gets all the interest or you build your own. And then you get to participate and figure out how you're going to use the interest that you get off of the reserves. And a lot of parties that have an existing distribution channel, of course, they want to tap into that. Eventually, I believe I don't know what arc of time it's going to take to get there. Eventually, we will have interest on stablecoins. And when that happens, the calculus changes. Now being an issuer is no longer so much about keeping the interest from your own distribution channel. Instead, you'll pay somebody much like an ETF, you'll pay them an administrative fee, probably 40 to 80 basis points and then you'll be able to get the interest from them. So suddenly, the need to be an issuer will be less. So it's an interesting place where I think, on one hand, we here at Bitgo are very much in favor of, yes, you should be able to provide interest on stablecoins, and that should be the way it works. I don't think that, that's going to happen. I think whether CLARITY Act passes or not, it's going to remain kind of constrained, and that's going to lead to more people wanting to be their own issuers, and that leads to more people wanting Bitgo stablecoin as a service product. Christopher Brendler: I was thinking as well. Operator: Thank you for your participation. That is all the time we have today for the question-and-answer session. I will now turn the call back to Mike Belshe, Founder and CEO, for closing remarks. Michael Belshe: Thank you, everybody, for joining us today. I appreciate your interest and support of Bitgo. Thanks, everybody, for saying congratulations. I think it's not entirely necessary, but it is appreciated. The entire team here at Bitgo works super hard. We've been doing it for 12 years. The people feel we're on a mission to really change the way the financial system works, and we're really proud to be a part of it. So thank you and look forward to keeping in touch with all of you on this journey. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Bitgo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitgo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!* Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Bitgo (BTGO) Q4 2025 Earnings Transcript was originally published by The Motley Fool

BitGo Holdings (NYSE:BTGO) released second-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. The full earnings call is available at https://events.q4inc.com/attendee/974937511 BitGo Holdings Inc reported a 113% year-over-year increase in total revenue to $3.8 billion, though sequentially it fell by 39% due to a shift in trading from spot to derivatives, impacting revenue reporting. The company launched several strategic initiatives, including derivatives trading, which saw $3 billion in notional volume in Q1, and expanded partnerships with firms like 21Shares and OKEx to enhance institutional settlement infrastructure. Future guidance suggests that digital asset sales revenue is expected to remain stable in Q2, with anticipated growth in stablecoin services and a continued focus on strategic growth areas like tokenized equities and stablecoin infrastructure. Despite market headwinds, the company increased its client base by 42% year-over-year to 5,569 and reported a 29% year-over-year growth in normalized assets on platform. Management emphasized that periods of market volatility are opportunities to strengthen the business, focusing on product development, regulatory capabilities, and expanding client engagement. OPERATOR Hello everyone. Thank you for joining us and welcome to BitGo first quarter 2026 earnings call. After today's prepared remarks, we will have a question and answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to Rachel Dye, Head of Investor Relations. Please go ahead. Rachel Dye (Head of Investor Relations) Hello everyone. Good afternoon. Thank you for joining BitGo's Q1 2026 earnings conference call. Our remarks today will include forward looking statements including those regarding our future operating results and financial condition, such as our business strategy, market growth and objectives for future operations. Actual results may vary materially from today's statements. Information concerning risks, uncertainties and other factors that could cause these results to differ are included in our SEC filings, including those that are stated in the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2025 and in our other filings with the SEC. These forward looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward looking statements. Additionally, the matters we discussed today will include both GAAP and non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to the most directly comparable GAAP measures are set forth in our earnings press release. Non GAAP financial measures should be considered in addition to, and not as a substitute for GAAP measures. Joining me today on the call are Mike Belshee, Founder and CEO, as well as Ed Reginelli, CFO. With that, I will now turn the call over to Mike. Mike Belshee (Founder and CEO) Thank you Rachel and thank you everyone for joining us. We delivered strong underlying business performance in Q1 despite continued softness across the broader digital asset market. While market activity created pressure on our headline financial results, underlying monetization across the businesses remained strong and we continued to gain market share across assets under custody, trading volume and several of our product verticals during the quarter. We also continue to invest across product platform and go-to-market capabilities while making meaningful progress across several strategic growth areas that we believe will matter over the long term. Before I go deeper into the quarter, I want to address an important point regarding the accounting presentation of our results as we expect this will be an area of investor focus. Bitgo today operates multiple businesses across trading, staking, financing, stablecoin, infrastructure, settlement and other related services under GAAP. Different parts of the platform are recognized differently for accounting purposes, with certain activities reflected on a gross basis and others reflected on a net basis. As the business continues to Scale and diversify. Reported revenue alone does not always capture the underlying economics or monetization profile of the platform. At the start of January, we launched derivatives within our digital asset sales. Business adoption has been encouraging with approximately 3 billion in notional derivatives trading volume in Q1 alone. As a result, a portion of our client activity shifted from spot trading to derivatives products. That mix shift matters when evaluating our reported revenue because spot trading activity is reflected on a gross basis while the derivatives are reported on a net basis. As a result, the sequential decline in total revenue does not fully reflect the underlying platform economics and reported revenue. Comparisons to prior periods are not directly comparable. More broadly, we believe investors should evaluate the business through the underlying margins, take rates and net economics after direct transaction related costs associated with each of our core revenue streams. We are building institutional grade digital asset infrastructure, the secure regulated control layer that institutions rely on to build within digital assets. Our clients increasingly want integrated workflows across regulated custody, trading, financing, settlement, stablecoin infrastructure and related services through a single trusted partner. We continue to strengthen that foundation throughout Q1 and we believe its importance will only increase as the market matures. We view custody as the entry point to the broader Bitgo platform and the foundation of our client relationships. Clients establish trust, bring assets onto the platform and increasingly expand into our other products and services with a single integrated framework. This land-and-expand strategy is central to how we deepen client engagement. It's how we increase workflows across the platform and drive long term platform value. We also continue to see growing participation in the space from traditional financial institutions, including asset managers, issuers and other large counterparties. In our view, this remains one of the most important long term tailwinds for Bitgo. These institutions are generally not building infrastructure from scratch. They are looking for trusted partners that can support digital asset adoption in a regulated and scalable way. This is exactly where Bitgo is focused and where we believe we are differentiated. Our advantage is the combination of regulatory standing, security architecture and the breadth of capabilities we provide within a single integrated platform. Operationally, this was reflected in a continued deepening of client engagement across the platform, increasing our number of clients served to 5569, up 42% year over year and users to 1.2 million. Despite broader market headwinds, reported assets on platform at the end of Q1 were approximately 63 billion and reported assets staked were 11.8 billion, both down from prior periods in dollar terms, primarily as a result of lower digital asset prices during the quarter. Because digital asset prices can materially impact reported asset values. We also evaluate underlying asset growth on a price normalized basis. We believe this more accurately reflects the fundamental growth of the business, client inflows and Bitgo's continued market share gains independent of the market price movement using current quarter digital asset prices. Across all periods, normalized assets on platform actually grew 29% year over year and 10% sequentially. Normalized stake balances grew 21% year over year and 27% sequentially. Bitcoin and Ethereum balances on the platform grew 131% year over year and 7% sequentially. Taken together, we believe these demonstrate continued underlying momentum across the business despite the broader market volatility. Let's now dive into some key operational and commercial highlights from quarter one a key focus throughout Q1 was continuing to broaden the reach of our institutional platform through expanded commercial relationships and partnerships. For example, in Q1 we significantly expanded our partnership with 21 shares with one of the world's largest issuers of cryptocurrency exchange traded products. This highlights the underlying demand for regulated crypto exposure in key markets around the world, including throughout Europe, and builds upon Bitco's existing markets. Additionally, just a few weeks ago we announced plans with OKEx, a leading crypto exchange, to bring automated off exchange settlement infrastructure to institutional clients trading on OKEX in the US this is an example of Bitco helping solve structural challenges for institutional trading, which has historically required institutions to pre fund assets on exchanges and take counterparty risk against those exchanges. It addresses the growing demand from institutions to separate custody from trading risk. We believe this is a major milestone for the industry, clearly establishing Bitgo as the leader in institutional settlement. Beyond these announced partnerships, we also deepened relationships across a broader set of institutional clients, exchanges, asset managers and ecosystem partners during the quarter, including several strategic engagements that have not yet been publicly disclosed. These partnerships are important not simply because of their headline value, but because they reflect the increasingly strategic role Bitgo plays within the institutional digital asset workflows. They demonstrate that institutions are choosing Bitco not only for custody, but as a premier core infrastructure partner to support broader operational and financial activity. Throughout the quarter. We continue to extend our product capabilities into strategic growth areas. As I touched on earlier, we launched derivatives trading in January to support growing client demand for tools that help manage volatility, hedge exposure, generate yield and structure risk more efficiently. Adoption in the first quarter of launch has been encouraging and we have already seen meaningful engagement across the platform. Importantly, some existing spot clients are now incorporating derivatives into broader workflows within Bitco which is exactly the type of cross product adoption we want to drive over time. Stablecoins is another area where we made meaningful progress and where we continue to see significant long term opportunity. We have said consistently that stablecoin infrastructure can become one of the most important growth areas for Bitcoin over time and this quarter reinforced that view. Stablecoin infrastructure is one of the clearest examples of how Bitgo's platform extends beyond trading into broader financial and payments workflows. During and shortly after quarter end, we launched Bitco Mint, a one stop portal where clients can mint burn and convert stablecoins from one type to another. We also continue to support clients and partners across reserve management, transaction processing and the broader operational stack around stablecoins. When we look at client conversations today, the range of stablecoin use cases is getting broader across payments, Treasury Management, settlement, tokenized asset infrastructure and embedded financial applications. We believe Bitco is well positioned to benefit from these trends and we're pleased to announce several stablecoin related commercial partnerships and including with Stablec, SOFI and the Better Money Company on financing and broader institutional workflows. We launched our Unified Financing platform and further expanded Prime Services capabilities including additional Risk management, Structured products financing and treasury tools. These investments are strategically important. Each time we add a new capability that helps clients keep more workflows inside the Bitco ecosystem, we deepen client engagement and increase the overall utility of the platform and make Bitgo more central to how those clients operate. Geographic expansion has also remained an important priority this quarter. Bitco was named issuer and primary custodian for fyusd, a US dollar backed stablecoin designed for institutional adoption across Asian markets in Europe. Beyond the 21Shares partnership, we added new traders to Bitcoin Prime's liquidity network in April, improving execution for our clients on our regulated infrastructure. I'd like to now provide some context on the financial results before I hand this over to Ed for a more detailed discussion. We were not insulated from the market environment, softer market conditions, reduced activities in parts of the business and the non cash markdown on our digital assets. Treasury weighed on GAAP earnings. However, despite this environment, the underlying economics of the business remained resilient while relative to broader market conditions as they were supported by continued market share gains, improved monetization across several of our core business lines and ongoing client engagement across the platform. At the same time, we continue to invest in the strategic areas we believe will drive durable long term growth such as product platform, regulatory capability and go-to-market execution. Having operated through multiple up and down cycles in our 13 year history. We believe periods like this often create the best opportunities to strengthen the business and deepen our long term competitive position. Looking ahead, some parts of the business remain sensitive to market activity and token prices, while other parts are benefiting from onboarding, product expansion and continued traction with clients and partners. Ed will take you through that in more detail, including the financial bridge for the quarter and the key drivers across each business line. Before I hand it over, I want to close with a broader perspective on where we see the industry heading Institutions continue to move into digital assets. Stablecoins continue to become more relevant to real world payments and financial workflows. Tokenization continues to create new infrastructure needs. At the same time, regulatory clarity continues to improve across key jurisdictions, including constructive momentum in the United States around market structure and digital asset legislation such as the Clarity Act. We believe greater regulatory clarity is one of the key factors that can further accelerate institutional adoption and BICO's total addressable market over time, particularly as traditional financial institutions seek clearer regulatory frameworks before committing additional capital and resources into the digital asset market. As the market matures, clients increasingly want trusted regulated integrated partners rather than fragmented piecemeal solutions. We believe those structural trends continue to support the long term demand environment for Bitco. Periods like this often separate businesses that are simply exposed to market activity from businesses that are building durable value. Our role is not to call the market. Our job is to continue strengthening the platform and deepening the client relationships and positioning the business to emerge stronger as adoption expands. We did that in Q1. Now I'll turn it over to Ed. Ed Reginelli (Chief Financial Officer) Thank you Mike and thank you everyone for joining us today. Let me start with the consolidated financial view and then walk through each of our major offerings. In the first quarter, total revenue was $3.8 billion, up 113% year over year and down 39% sequentially. The year over year increase reflects a larger digital asset sales business and a broader contribution from stablecoin as a service relative to prior year quarter. The sequential decline was primarily the result of lower digital asset sales activity in a soft crypto market environment. As Mike noted, the headline percentage change overstates the decline in trading revenue as a portion of spot trading activity has shifted to derivatives, which are reported on a net rather than gross basis. For that reason, we do not think that analyzing total revenue alone fully captures the underlying economics of the quarter. While total revenue declined 39% sequentially, direct costs also declined at a similar rate. At the same time, margins and take rates improved across digital asset sales staking and stablecoin as a service. As a result, the sequential decline in total revenue was more pronounced than the change in the underlying economics of the business. Adjusted EBITDA loss was $1.7 million in the quarter compared with a positive $3.9 million in Q1 of last year and a positive $12.1 million in Q4. The year over year and sequential change reflected weaker market conditions, lower subscriptions and services revenue and continued investment in the business. It also included approximately $3 million of one time legal, professional costs and other one time charges associated with the IPO process and other strategic initiatives. GAAP net loss was $60.7 million in the quarter compared with a net loss of $25.7 million in Q1 of last year and a net loss of $50 million in Q4. The primary driver of that result was negative mark to market adjustments on digital assets as well as elevated IPO-related stock based compensation expense which we expect to normalize from Q1 26 levels going forward. Let me now move to the offerings starting with digital asset sales. Revenue for digital asset sales was $3.7 billion, up 128% year over year and down 39% sequentially. While overall trading activity reflects a weaker market environment, the underlying economics of the business improved during the quarter on a normalized basis excluding the accounting impact of the derivatives mix shift. Our underlying trading economics outperformed the broader market sequentially and significantly outperformed on a year over year basis. We believe this reflects continued market share gains in institutional digital asset trading. Overall margin was 32 basis points compared with 20 basis points a year ago and 24 basis points in Q4, primarily driven by the contribution from derivatives activity following the launch of the offering on January 1st of this year. Strategically, we view derivatives as an important extension of Bitco's platform. Clients increasingly want integrated workflows that include risk management, hedging, yield generation and structured solutions alongside spot execution. Expanding those capabilities strengthens client engagement and increases strategic relevance of our trading platform over time. Turning to staking revenue was $49.4 million, down 66% year over year and 15% sequentially, primarily reflecting lower token prices. Staking take rates increased 16.1% from 7.6% in Q4 and 12.5% in the prior year quarter driven by additional token onboarding and a more favorable validator mix including the contribution of the higher economics of the Canton related activity. While the current mix may vary over time, the broader takeaway is that we are improving the economic quality of this business line while continuing to expand token support, subscriptions and services. Revenue was $25.6 million up 11% year over year and down 35% sequentially. The sequential decline primarily reflected a lower level of one time ecosystem and implementation oriented projects compared with Q4 when activity in this area was elevated. While these projects are not recurring in nature, they remain strategically important because they often support token onboarding, client implementations and broader downstream revenue opportunities across the platform. As a result, we do not view the sequential revenue decline as representative of the underlying health of the recurring revenue base. Stablecoin as a service continued to be the bright spot during the quarter. Revenue was $38.2 million up 44% sequentially. Take rate improved to 7.4% from 5.5% in Q4. Growth was driven by continued client adoption, product enhancements and new partnerships. We view stablecoin infrastructure as a significant long term growth opportunity for Bitco supported by expanding adoption across payments, settlement, treasury management and broader financial applications. Finally, interest income was $0.9 million up 259% year over year and 89% sequentially. Turning now to expenses, the most important point is that the quarter reflects both temporary and strategic factors. We incurred approximately $3 million of one time legal and professional fees related to the IPO process and other strategic initiatives. Our stock based compensation of $11.2 million was also elevated during the quarter compared to $0.8 million in Q4 of 2025. We expect a moderation in share based expense on a go forward basis during the quarter. We continue to invest in talent, product development and platform capabilities as part of a deliberate long term strategy. We are managing the business with discipline, but we are not managing the business to maximize 1/4 of profitability at the expense of our long term growth opportunity. Our balance sheet remains Strong including approximately $186.6 million of cash and $167.1 million of Bitcoin held in treasury on the balance sheet as of the quarter end. Combined with our Capital Light model, this provides the flexibility to invest through the current cycle, support client activity across the platform and pursue strategic growth opportunities from a position of strength. I'd also like to briefly touch on the higher interest expense in the quarter. This reflects funding used to support customer borrowing and lending activity on the platform. Importantly, this was operational in nature rather than corporate financing and helps enable revenue generating client workflows within the business. Moving now to Our outlook for Q2 2026 based on quarter to date trends, we are assuming that Digital asset market conditions will remain broadly consistent with current levels, building on the stronger performance observed at the end of the first quarter. Digital asset sales revenue is expected to remain broadly consistent with Q1, with margins anticipated to be comparable. Assuming a similar mix of derivatives and spot trading activity. Current trends indicate strong year over year growth for the quarter. Staking revenue is expected to remain broadly consistent with Q1 supported by continued growth in staked assets despite ongoing price volatility in key tokens, subscriptions and services. Revenue is expected to grow sequentially on a reported basis supported by client growth across custody and wallets, while also benefiting from non recurring ecosystem and implementation related work. Stablecoin as a service revenue is expected to grow modestly sequentially supported by ongoing client adoption and new partnerships. Total expenses for the second quarter, excluding direct costs associated with digital asset sales staking and stablecoin as a service are expected to decrease from Q1 levels with which were driven by IPO-related charges during the quarter and normalization of stock based compensation. The company will continue to invest in long term platform growth and go to market execution. With that, I'll turn it back to the operator to open the call for questions. OPERATOR We will now begin the question and answer session. Please limit yourself to one question and one follow up. If you would like to ask a question, please press star1 on your telephone keypad. To withdraw your question, press star1 again. Please pick up your handset when asking your question. If you're muted locally, remember to unmute your device. Please stand by now while we compile the Q and A roster. Your first question comes from the line of James Yarrow with Goldman Sachs. Your line is open. Please go ahead. James Yarrow (Analyst) Good afternoon Mike. I'd love to to just get a little bit of an update around the stablecoins and service demand from partners and I guess how this has evolved as the Clarity act progresses and then maybe longer term, how would you expect the act passing to impact the demand? Mike Belshee (Founder and CEO) Hey thanks James. Appreciate the question. Good to speak to you all. In terms of stablecoins continues to grow strong. I mean basically everybody's out there looking at Clarity Act and Genius which doesn't allow interest. And so if you have a broad distribution of users at your bank or financial institution, you're faced with a choice. Do you a launch your own stablecoin and then be able to participate in the yield, use it with your partners, use it for your business in some way or do you give that up to somebody else who's going to instead take that? So in general just strong interest? I know, others have cited, you know, lengthy pipeline. I've got a couple of deals we can't announce yet, but continues to look really positive. Also we did just extend our USD1 contract. So we're happy that that partnership has been doing fantastic. James Yarrow (Analyst) Thanks Mike. That's really helpful. Just as a follow up, sort of a similar question around tokenization facilitating, you know, tokenization projects and how you see the opportunity set for your business there. Mike Belshee (Founder and CEO) Look, I think tokenized equities have really exploded in the last six months. There's at least four kind of different models for how to bring tokenized equities to market. We're proud that we participated, actually participating with all of them. Just, you know, we are infrastructure. So one of the benefits of being infrastructure is that we participate on all of these and then we work with the clients, kind of forge them. I think the market's going to figure out which of these work best. So you know, the first one that we're proud of is, you know, we, we are the sole custodian within the Figure Markets ecosystem and they started I think in February. Obviously they've got one model which uses, you know, Provenance and Figure's ATS. So that's been been kicked off. On top of that there's tokenized wrappers that exist. There's a couple of different players pursuing that. You saw DTCC just announcing that they've got a plan to go to market. We will be participating with all these and we think it opens up our business tremendously, you know, kind of towards how we grow in the direction of prime brokerage. So anyway, we're very excited about this. We're heavily investing in it and more to come. James Yarrow (Analyst) Very helpful. Thanks Mike. Pete Christianson (Analyst) Your next question comes from the line of Pete Christianson with Citi. Your line is open. Please go ahead. Thank you. I appreciate the question here. Mike, back on stablecoins as a service, what degree are is Bitco involved in the design and construction of the networking, meaning connecting with other partners which may not be part of the Bitco client ecosystem. My thinking is there's an opportunity from a lead gen perspective for services with stablecoins as a service emanating from one particular client to others. Just wondering if you could provide some color on that and curious on any learnings here on scaling this business and what it could mean for potentially launching L1 as a service at some point. Thank you. Mike Belshee (Founder and CEO) Great, thanks Pete. Let's see on the first point about stablecoins, I'm glad you're hitting this. It's a little bit of a subtle point, but one of the advantages that BitGo has with the large client base is that anyone that launches their stablecoin directly with BitGo immediately plugs into an entire network. And if you recall, at the bottom of our stack we have our self custody wallet platform that's distributed all over the planet. Hundreds of exchanges and broker dealers are using that. As soon as you light up on the BitGo API, you light up on all of those parties. Additionally, I think some of the traditional folks that are coming into the space are a little bit more, if you want to use Peter Thiel's analogy of zero-to-one, they're really more like the one to many and BitGo's kind of like the zero to one. I do think it's a different skill set of how do you take a product which currently isn't deployed and get the flywheel spinning and grow it? So BitGo's got tremendous reach into the DeFi ecosystem, into the crypto ecosystem. Obviously we've got partners and hedge funds and venture funds and all others. So when folks use the BitGo platform for stablecoins, we definitely are actively working with, helping them. And you've seen historically there's been a few stable coins that launched several years ago and they, they pretty much stayed kind of at zero for a long period of time. And that's because of not having necessarily really good, good go-to-market plans. So we definitely help our clients with this. We're motivated and interested and incentivized to do so. And I think that's one of the advantages of using the BitCo stablecoin platform. I'm sorry, you had a second part of the question. What did you ask Ian? Oh, on the potential of taking learnings Pete Christianson (Analyst) and the capabilities that you have with stablecoins as a service, to potentially offering L1 as a service at some point. Mike Belshee (Founder and CEO) Oh, for BitGo, correct. That topics come up quite a bit. I think, you know, some of the new Layer 1s, particularly around stablecoins are, are hitting a new need that you know, the, the kind of, the first generation of Layer 1s didn't solve and that's the ability to pay fees in kind of the stablecoin. So both Tempo and Arc, as you're probably aware, you know, if, if you're moving your, your stablecoin, whatever fees you pay to the chain, you actually can pay in the stablecoin itself. Whereas when stablecoins are moving on Ethereum or Solana or whatnot, you always have to, in addition to having the stablecoin, you have to have a little bit of the Layer 1 token. So I think these innovations are going to, frankly, they're kind of just required. I mean, it's annoying and a nuisance to have to pay kind of a foreign fee in order to move the stablecoin. As for BitGo's own ambitions, there could be something. We have not announced anything publicly yet, but stay tuned. Pete Christianson (Analyst) Thank you, Mike. Logan Your next question comes from the line of George Sutton with Craig Hallam. Your line is open. Please go ahead. Awesome, thanks. Hey guys, this is Logan hopping on for George. Mike, I wanted to start with sort of a specific one on Canton. Obviously you were an early supporter there and you made a few announcements since kind of this year. Expanding that partnership seems like a blockchain that we keep hearing a lot about, and it's kind of getting more business. So I wondered if you could just walk through some of the different ways that you're set to benefit from their growth and just kind of give us a sense for where that relationship could go in the future. Mike Belshee (Founder and CEO) Sure. Thank you for the question. Let's see, took Anton. I mean, we've been a big supporter of Digital Asset, DRW, and Don Wilson for quite some time. We're proud to be the only qualified custodian on the network today. Canton deserves credit for really addressing early some of the institutional complaints that come with building applications on blockchain, in particular, privacy, in particular how you receive assets. There's been concern about dust transactions on Bitcoin, Ethereum, etc. And they solve these problems. And so they've been able to bring in a number of people. They also are, I think, having kind of a second mover advantage in terms of understanding how to distribute their own token in a way that's fair and helps incentivize the network and grow before having it kind of hit the market and liquidate and cause issues. So I think they're. They're well poised. You know, the privacy. They're kind of the. The only permission privacy chain in town right now. And with the growth they've had, I think, I think they're looking good in terms of Bitgo. One of the things that's interesting about Bitgo and often difficult to describe is going into depth on a particular coin or an asset. I mean, we'll say that, hey, BitGo has wallet support for pick your favorite coin, or we have staking support. And it's easy to say we have the wallet, we have the staking. But there's also a lot of depth that goes into that. Like what features do you Support on that coin. You know what, how many staking providers are you interoperable with? Like what flexibility do clients have? And part of how we grow is by making sure that we can meet all of our clients needs. So one example specific to Canton, it's kind of a funny one I think, but it's also really important. I mentioned these dust transactions. So you know, traditional finance is often worried, well, like, you know, what happens when you're a financial institution. You receive these dust transactions on this open network and what if you didn't want it? What if it's from, you know, a bad guy? And how do you deal with that? Now my own personal opinion is that in practice these are not significant issues, but these really do trip up regulators, legal teams, you know, extensively. Canton has a feature where you can accept, you know, all the deposits and prove them. And so Bitcoin is not just integrated with the chain. We actually implement that feature. That particular feature then creates the demand for more features. It turns out that it's a little bit annoying to constantly have to approve every transaction that comes in. So then they want whitelisting and you know, ability to kind of approve those in batch and things like that. So we build those anyway, I think we're well poised. I think we're happy that we have the large network on Canton in terms of we're able to integrate with go network and other things on the go forward that should just continue expanding. Logan Got it. Helpful color. Second, just a quick one for me. I mean kind of putting the reporting differences aside, are you able to just kind of walk through how the net economics on spot volume compared to derivatives volume compare for you guys? Just want to get a better understanding as this shifts over time. Kind of what we'd expect to see on that net revenue line. Mike Belshee (Founder and CEO) I'll hand it to Ed in just a second, but some quick color. I think in the crypto markets you will see the same thing that's happened in other markets. Derivatives tend to be a better way, more economic way to trade in the industry. And so the volumes on the derivative side will continue to grow and eventually far outpace the spot markets. So we already saw in Q1 some conversion from spot market trading over to derivatives trading, which was expected and we hope to continue to grow that. So for just kind of one quarter of offering, we think that the results were pretty good and we think that that will continue. And then of course, you know, kind of our margin on a, on a derivative product is, is higher than what you would have in spot Markets. So we're happy about that as well. Ed, did I leave anything off? No. Ed Reginelli (Chief Financial Officer) I mean, we were, as Mike mentioned, very excited to extend some more product within our trading. Really strong client adoption and we're still very, still excited about the spot trading business. Year over year we have seen tremendous growth. We did go down sequentially and that was really just due to the fact that in Q4 we had exceptional volume from a few key clients. But overall we're excited about trading and expanding our capabilities and extending product launches that. Okay, got it. Thanks guys. Brett Knobloch (Analyst) Your next question comes from the line of Brett Knobloch with Cantor Fitzgerald. Your line is open. Please go ahead. Perfect. Thanks guys for taking my questions. Maybe just on kind of the segment stuff, the subscription services sequential decline was a bit more than I was anticipating. And I know you guys called out, maybe it was due to lower onboard or patient fees, but could you maybe provide some just color on the underlying strength in that business? I know the number of kind of clients continue to increase. You know, how did the subscription services do outside those? Maybe, you know, one time non recurring fees. Mike Belshee (Founder and CEO) Thanks, Brett. First off, on the one time recurring fees, just so people understand what those are. You know, as we take on new coins and build them, sometimes they've got, you know, particular technology components that are extensive. And so we do charge blockchains and others onboarding fees to do that. However, what we really want to make, you know, our impact in the world is with the ongoing recurring revenues that come from real clients. So yes, the one time components came down on the subscriptions and services. You know, I think it's been in line with where we would have expected it to be, other than that we had less of the one time fees. The other thing I would point out is increasingly we are wanting to move the revenue kind of up the stack. As I mentioned before, you know, the custody fees and subscription fees by themselves, that's kind of a cost center to our clients. However, paying fees as our clients are doing work with trading and with staking and with borrow and lend, et cetera, those are where they're making money. So it's a much more palatable place for our clients to pay us fees, that does change the mix a little bit. And it's one of the challenges in describing the business is that we have multiple products and services and I don't have the stat. Maybe Ed has the stat, but you know, we shared previously, you know, about 70 to 73% of clients are using two or more products and then over half the clients using Three or more products. So we think that really if we can bring clients in and we lead with, you know, custody is the way they come in and it's usually what we're known for, but they grow into these other products and services. And we think that's the strength, Ed. Ed Reginelli (Chief Financial Officer) Now we've, we've seen tremendous growth in number of clients utilizing our custody and wallet products. And that's somewhat of a recurring revenue stream. So that story remains very strong. Again, the big story there was in Q4, we did experience a very large volume of ecosystem projects, excluding that the business performed very strong year on year, first of all, and then also sequentially. So overall we're still very optimistic about our customer pipeline and, and that business, that part of our business growing. Awesome. And maybe if I could just follow up on the statement side. Yeah, go ahead, Mike. Brett Knobloch (Analyst) Yeah, go ahead. If you had another point on that. Sorry. Mike Belshee (Founder and CEO) You know, the. One of the things I would like to figure out how to do really well with all of you guys is how do we differentiate the Bitco performance from, you know, the market price volatility performance? And obviously we don't consider ourselves to be a huge impact on the latter, although hopefully we have an impact to some degree, but really we want to focus on the former. So the normalized numbers that we discussed on the call, I think looked pretty encouraging as long as we are. And it doesn't really matter where you pin the prices, so you can pin it to the beginning of the period, the end of the period. In all cases. We saw significant growth both on the assets on platform and also on the assets under stake. So the revenue that we'll get on, you know, the logistic custody component will be down from the US Dollar notional, sorry, the US dollar pricing. But in terms of the actual assets on platform, we see good growth there. So we're happy about that for the future. Brett Knobloch (Analyst) Helpful. And then just on the staking front, obviously asset stake decline, that's general declines in asset prices. But it looked like the take rate there ticked up a good bit. If I'm just doing kind of beginning of period and the period average almost like doubled quarter over quarter, I guess. Did you guys take up pricing on the staking side? Mike Belshee (Founder and CEO) Yeah, we had a couple of different things. We had a change in the mix of some of the partners that we work with. And then also some of the coins are stronger in terms of the rates we get on those. So those have been positive for us. And then lastly, as we did note on the call on a normalized basis the overall assets under stake did grow. Remember the assets that you stake is basically the non bitcoin assets which is like the one set of assets are even more volatile than bitcoin. So. Ed Reginelli (Chief Financial Officer) And the only I guess thing I will add to that is the what was your last time I might do? I think you covered it, Mike. You covered one thing. I knew I was going to say the. The only thing I would add is in addition to a positive validator mix, as we get to a certain size and volume with certain coins, we're able to push a lot of that staking capability to our own nodes where we appreciate a much higher margin. So that's also helping support the margin growth. That's a good flag. Thanks Ed. Thank you guys, really appreciate it. Ed Engel Right, your next question comes from the line of Ed Engel with Compass Point. Your line is open. Please go ahead. Hi, thanks for taking the question question on the increased stablecoin take rate. Any more color on what's driving know that there is moving pieces between partnership mix and then I guess maybe some transaction revenue. I just want to kind of get an idea of if transaction revenues actually started to drive that business rather than just interest income. Thanks. Actually I think it's. It's mostly that kick starting the business. We actually gave some discounts kind of on the early piece when coins are growing and then now we've kind of graduated beyond that. So the, the take rate just goes up as a result of that. That's the main one. In terms of stablecoin conversions we do, we do a lot of stablecoin conversions. Those are relatively low margin and those show up more in the trading side rather than under the stablecoin numbers. Great, thanks for that. And then I guess on the OKX integration for off exchange settlement it kind of seems like it's just a matter of time before this structure becomes kind of the standard industry. Just curious like how do these integrations I guess help the business just economically? Is there, is it more of a way to kind of gain and maintain market share or actually would monetize some of those trading fees? Yeah, great, great question. Look, part of it is you get the access on platform and then you have the opportunity to address those clients in many ways. So we're trying to help make the settlement network just be the strongest, largest volume that's, that's out there and the most important place to be is on the the largest exchanges. So you know the big three is Finance and OKX and Bybit. So this is, this is one of the Big ones. And we're really excited about the fact that we have it. And then in terms of how we make money, I think one of the, one of the elements of the crypto industry that hasn't been fully considered, you know, through Most of our 10 year history is how to price risk. So remember, when you're, when you're doing trading, there's three components of pricing. Number one is okay, what's the cost? The underlying asset that you're trading? Number two is how much profit do you want to take? 5 bips, 10 bips, 100 bps. And the third one is what is your risk? And because crypto markets are highly volatile, relatively new, require pre funding out of exchanges. The measurement of that risk is super tough. And of course the industry has seen big penalties like what happened when FTX had a blowout back in 2022. So the main thing that our clients get out of having off exchange settlement is reduced risk and the ability to start actually measuring and quantifying the risk so that they can get their prices right. I think so far what's been happening is we have really wide margins on the, on the profit side. And then people just say, well, that's big enough. It'll cover some of the risk that I'm taking now with the ability to trade without having to pre fund various venues, you take out that risk and you can start to quantify it for real. So this is going to bring prices kind of back. And you know, we see Charles Schwab came in, I think what were they going to be at? 75 basis points on their retail trading. And then Morgan Stanley has now announced that they're going to do 50bps on their retail trading. You know, as they bring their, their rates down, they are going to increasingly have to figure out how they're going to measure and control the risk that they're taking. And I think they're going to, they're going to find Bitcoin Settlement Network to be a very satisfying place to. Great, thank you. OPERATOR Your next question comes from the line of Brian Dobson with Clear Street. Your line is open. Please go ahead. Brian Dobson (Analyst) Hey, good evening. Thanks for taking my question. So at the top of the call, you spoke a little bit about growing your share of a client's business organically over time. Can you give us a little bit Mike Belshee (Founder and CEO) of color on what that looks like and how you're thinking about client acquisition costs? Yeah, look, it's been one of, thank you, Brian. It's been one of our key metrics, you know, since our, our IPO day back. Back in January. But I mean, before that, internally, look, overall, the. The market is simply expanding. And what started out, you know, a decade ago as primarily Bitcoin and then expanded into a few other assets and then ICOs, and now it's grown into stable coins and deFi. You know, it's. It's about to go into tokenized equities. So the, the more clients you have on platform, the more it means that your clients are going to be able to match each other on the settlement network and whatnot. So we look for partnerships where we can have a partnership that brings on more clients. The OKX platform, I'm sorry, OKX integration is no exception. By doing that deal, we can now work to Find clients that we have in common. Sometimes we're helping OKX with getting more clients, sometimes they're helping us with getting more clients. Brian Dobson (Analyst) Basically, anywhere that we can find a partnership where one client gets more clients, we consider that a win. Great. Thanks very much. Joe Vafi (Analyst) Your next question comes from the line of Joe Vafi with Canaccourt Genuity. Your line is open. Please go ahead. Hey guys, good afternoon. Thanks for the question here. Just maybe we talk about the loan book a little bit, how you're thinking about that strategically, you know, where it may go from here, how it's performing here in the spot volatility market, and then quick follow up after that. Ed Reginelli (Chief Financial Officer) Thanks, Joe. Ed, you want to answer on where we're at right now? Sure, I'll answer after that. Yeah. Mike Belshee (Founder and CEO) So the loan book is currently roughly around $200 million outstanding. With client facing. We believe there's an incredible opportunity ahead of us that we had mentioned, Joe, in the past, that our problem is we have more demand than we have supply of dollars to lend. A lot of the clients are looking for US Dollars to borrow, so we try to Find unique ways of bringing in additional dollars. Obviously, the IPO was very helpful in bringing in some additional funds to the company to support the program. So we'll continue to keep building that program, but again, the opportunity that we see there is huge. Joe Vafi (Analyst) And then just adding into this, part of why I'm excited about the tokenized equities is like, I think there's tremendous demand to borrow against fully collateralized, you know, fully collateralized positions against all kinds of things. And while there was a healthy market borrowing against fully collateralized in bitcoin, there's a lot more people that have equities that they would be willing to apply towards this than there are people that are holding just bitcoin. So we think it's going to greatly grow the market once we've got tokenized equities on chain. Mike Belshee (Founder and CEO) That's great. I didn't actually think about that, Mike. And opening up that margin lending market on tokenized equities. And then yeah, just maybe, yeah, maybe. Kind of talk about a little bit of the mechanics of maybe some of your, your customers switching some trading volume from spot to derivatives. You know, it feels like if they wanted to do derivatives trading volumes, they could perhaps have been doing those away from you to begin with. So just, you know, wanted to drill down on the motivations of clients of, you know, of that mix shift from there and. Thank you very much. OPERATOR Thank you. One of the least sexy things that we do, but probably the most important things that we do is getting the regulatory right behind what we do at Bitgo. So our clients very much appreciate that we are occ, Chartered National Bank. They very much appreciate the regulatory standing that we have across the globe. Whether you're talking about Germany or Dubai or Singapore. And in general, once they've gone through the onboarding and diligence process with Bitco, it's difficult to replicate that with multiple partners. So you're absolutely right. They could have traded in derivatives last year, the year before with a number of different parties. Oftentimes that means opening accounts offshore. Oftentimes that means just opening accounts with, you know, crypto native firms that may not match the kind of profile that they're looking to work with. So the desire to have this one stop where they come to Bitco, we are their counterparty, they know who we are. They've been through our insurance, they've been through our SOC1, our SOC2 and all of our regulatory analysis and now they're ready to do these activities. So you're right, they would have participated before. They just didn't have quite the right partner and they're very happy to have. Chris Brendler (Analyst) In the interest of time, we ask that you please limit yourself to one question only for the remainder of the Q and A. Your next question comes from the line of Chris Brendler with Rosenblatt. Your line is open. Please go ahead. Hi, thanks and good afternoon guys. Just wanted to dig a little deeper on the derivatives business. Obviously it's still early days but a good start for that business. And I just wanted to know, you know, as you think about the impact on the net margin there, is it safe to assume that the increase you've seen there is the majority of the increase we've seen there or maybe all of the increase we've seen in that net capture rate has been due to the addition of driven revenue without denominator impact. And then can you talk at all about, you know, how you expect that business to contribute in the second quarter? And then I also had one follow up on the stablecoin as a service business. Just, you know, more detail on the growth in partners there and how the book will look as you grow away from just having the World Liberty. You know, how significant are the non World Liberty assets expected to be as you progress through the year? Thank you. Mike Belshee (Founder and CEO) Thanks Chris. I can add this, dad. Ed Reginelli (Chief Financial Officer) Yes. So the take rate or the margin that we saw during Q1 as we referenced was benefiting from the net reporting of derivatives. If you just look at the spot business, it's very consistent to what we experienced in Q4. So those margins haven't varied very much and we continue to experience that into the future as we get more and more of the derivative trades that will hopefully help influence our net take rate much higher to the future. Mike Belshee (Founder and CEO) And then on the stable coins, I'm not sure how to quite answer it. We do have some clients we can't pre announce. It's unfortunate. So we can't announce clients that are not ready to be announced yet. So unfortunately enough to ask you to stay tuned on the I guess one thing I didn't mention, but you probably have seen it this this last quarter we did launch what we call our Mint and Burn center. It's a place where all of our, you know, 5,600 clients can mint and burn directly in the assets that are straight from Bitco. We've got partnerships, you know, the intention is not to limit it to just the Bitco stable coins and then you can convert between stable coins all kind of right there. Additionally you can do it programmatically so it's super easy. If you've got your agentic bots running, they can completely through API do these types of conversions as well. I think there's probably more agentic announcements that have happened so far than real meaningful deployments, but we do see this as an important part for the future. Dan Dolef (Analyst) Your next question comes from the line of Dan Dolef with Mizuhi. Your line is open. Please go ahead. Hey guys, really nice results here. Congrats from from us. I have a question on the bank and Trust. So Bitcoin now holds bank and Trust, National Bank Charger Charter from the occ. This puts you in our view in a pretty exclusive category amongst crypto native firms. Maybe beyond the obvious Trust and Compliance signaling. What does the charter concretely unlock in terms of new revenue lines? Thank you. Mike Belshee (Founder and CEO) Thanks for asking. Actually, by the way, one thing I'd like to impress upon folks that may not be aware of kind of Vico's history, I think we might be the first OCC-chartered bank that converted in a day. And usually what happens is, and there's a lot of people that are in the application process with the occ, usually what happens, you get a conditional approval and then it can be like 9, 12, 18 months while you go and build the necessities fee at the OCC level of a bank. In Bitco's case, we were conditionally approved. We had to write a check to fill the regulatory capital and the next day we were operating. So, you know, doing these activities is something we've been doing for a long time. And so to answer your question, the reason that's important is because, you know, when we built Bitco Trust Company out of South Dakota back in 2018, it was pretty limited in scope of what it could do. I mean, all we wanted to do was to be able to kind of hold these assets in a fiduciary manner in a way that was bankruptcy remote, that was safe for our clients, our institutional clients to understand. But then every time we wanted to do something new, it was like more licensing, it was more updates to the business plan, working with the regulators and it was kind of. So as we went into the OCC process, you know, we put everything in there. So from trading to staking, to of course, custody, etc, these are all things that the regulator is familiar with in our business, part of our business plan. The OCC has, has worked with us on, and by the way, they've been great, really appreciative of, of their efforts there. So overall we feel like we've got the best standing with that OCC charter and the business plan that's approved in there. So it's pretty, pretty all inclusive. So I don't know if you had a particular area that you wanted to drill into, but I mean, look, obviously the, the services that we have up on top of custody already, those are where we're growing. And then this all grows towards prime brokers. Cassie Chan (Analyst) Your next question comes from the line of Cassie Chan with Wells Fargo. Your line is open. Please go ahead. Great guys, thanks for taking my question. I just wanted to ask, you know, it seems like the number of clients continues to grow and ticked up again this quarter how often all of the profile of these clients have changed in terms of AUM or Are they actually using, you know, multiple products in addition to custody right from the start now just curious if that's evolved as well. Thank you. Thanks Cassie. What I mentioned earlier, look, we have a lot of crossover between our services for our clients. That continues to do well for us. We should probably measure it for the next, the next reporting period. Maybe we'll talk about it next time more. But it's all I think been positive the profile of the client is changing in terms of we have this whole new addressable market which is the traditional financial firms coming to Bitcoast. So also have some announcements here that are not yet announced yet, but deals that are already signed and Inc. Which you will be hearing about I think in this quarter which are exciting from firms that you know, just a year ago would not have been listed in any type of crypto or digital asset related product. So we are seeing that, that shift. I do think clarity remains the next, Mike Belshee (Founder and CEO) I don't know if I want to call it a hurdle, maybe the next graduation point where a number of, maybe the more conservative firms will also be looking and solidifying their digital asset plans. But right now it seems like everybody's growing and you can see there's a heated race among the new entrants to try to be fastest and the best. So I think that is creating a bit of FOMO among those players that have not been in digital assets yet. And we are seeing all of those and all of those RFIs and all those RFPs. Stephen Glagola (Analyst) Your final question comes from the line of Stephen Glagola with kbw. Your line is open. Mike Belshee (Founder and CEO) Hi, thanks. Thanks Mike and Ed for the question. Can you unpack more on some of the prepared remarks around? How are you guys thinking about balancing the reinvestment and strategic growth initiatives around, you know, product platform regulatory capability that you called out while also driving operating leverage for sustAIned positive and growing EBITDA over time? Thank you. OPERATOR Yeah. Great. So we've been through I think three or four kind of up and down cycles in Bitcoin over the years and sometimes these down cycles are the best times to be building and especially AI is absolutely helping us on the build. So we don't see any need for like additional costs of any, any material type. Of course we're always watching to see, you know, where are the cost of the business. We did have one time expenses around, you know, the IPO itself and some legal costs that are associated with that. I think those were typical. And then for the most part like we're, we're building. I think there is A strong demand for this tokenized equities component. And you know, being first, you know, one of the things we have is I think the broadest support of L1s and L2s of any major custodian, certainly much larger than Coinbase and Anchorage. And staying ahead there does require, you know, that we continue to build. So we will continue to build there. But of course we're always watching the bottom line. We want to make sure that we are building a healthy business. I think that we're well within that those parameters right now. And then as the market exits its bear cycle, I think you're going to see real wins on all the economic measures that are going. Mike Belshee (Founder and CEO) We have reached the end of the question and answer session. I will now turn the call back to Mike Balschi for closing remarks. OPERATOR Thanks everybody for joining us today. So to close, I just want to come back to three points. First, underlying monetization has held up better than the gross revenue presentation would suggest. We are encouraged to see our team launching our derivatives trading products. As we talked about our overall, our higher overall margin and take rates across digital asset sales taking and stable things of service are great. Second, and most importantly, we continue to strengthen the business itself. We launched new capabilities, expanded business lines, we added clients and partners, we advanced the stablecoin infrastructure and continued investing in the people and the platform that we believe will drive long term benefits and growth. So that's the business we're building and it's the lens through which we believe investors should evaluate our progress as well. Finally, Bitcoin remains uniquely positioned as the institutional grade digital asset infrastructure platform. It's secure regulated control layer for digital assets and all the new entrants see that capability. Our advantage is the combination of regulatory standing, security architecture and the breadth of capabilities that we provide within a single integrated platform. We're operating in a large and evolving market and we continue to see encouraging demand across all areas of the business. Importantly, while reported asset values were impacted by lower digital asset prices during the quarter, you know, the normalized assets on platform and normalized state balances continue to grow meaningfully, which we believe will drive upside in our model as the digital asset prices recover. So thank you everybody. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: BITGO HOLDINGS (BTGO): Free Stock Analysis Report This article BitGo Holdings Q2 2026 Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Interested in BTGO? Here are five stocks we like better. Revenue surged to $3.8 billion in Q1, up 113% year over year, but BitGo also posted a wider GAAP net loss of $60.7 million. Management said softer crypto markets and mark-to-market accounting helped make the headline results less representative of underlying performance. Stablecoin and derivatives activity were key growth drivers. Stablecoin-as-a-Service revenue rose 44% sequentially, while BitGo’s new derivatives offering contributed about $3 billion in notional volume and improved margins across the digital asset sales segment. Core platform metrics remained strong, with clients served up 42% year over year to 5,569 and normalized assets on platform and staked balances both growing despite lower token prices. BitGo also highlighted new partnerships and expects stablecoin, subscriptions, and services revenue to grow in Q2. BitGo (NYSE:BTGO) reported sharply higher first-quarter revenue from a year earlier but a wider GAAP loss, as executives said softer digital asset market conditions and accounting treatment for new derivatives activity made headline results less reflective of the company’s underlying business trends. Founder and CEO Mike Belshe said BitGo delivered “strong underlying business performance” in the first quarter of 2026 despite “continued softness across the broader digital asset market.” He said the company continued to gain market share across assets under custody, trading volume and several product verticals, while investing in product, platform and go-to-market capabilities. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Total revenue was $3.8 billion, up 113% year over year and down 39% sequentially, CFO Ed Reginelli said. The year-over-year increase reflected a larger digital asset sales business and a broader contribution from Stablecoin-as-a-Service. The sequential decline was primarily tied to lower digital asset sales activity in a weaker crypto market, he said. Belshe and Reginelli both emphasized that investors should consider the accounting presentation of BitGo’s results. The company launched derivatives within its digital asset sales business at the start of January, generating approximately $3 billion in notional derivatives trading volume during the quarter. → MP Materials Is Quietly Building a Rare Earth Powerhouse Belshe said some client activity shifted from spot trading to derivatives. That matters for reported revenue because spot trading is reflected on a gross basis, while derivatives are reported on a net basis. As a result, he said, the sequential decline in total revenue “does not fully reflect the underlying platform economics.” Reginelli said direct costs declined at a similar rate to revenue, while margins and take rates improved across digital asset sales, staking and Stablecoin-as-a-Service. Digital asset sales revenue was $3.7 billion, up 128% from a year earlier and down 39% sequentially. Overall margin in the segment was 32 basis points, compared with 20 basis points a year earlier and 24 basis points in the fourth quarter, helped by the contribution from derivatives. → Micron Investors Face a High-Stakes Moment After the Latest Rally Adjusted EBITDA was a loss of $1.7 million, compared with positive adjusted EBITDA of $3.9 million in the prior-year quarter and $12.1 million in the fourth quarter. GAAP net loss was $60.7 million, compared with a net loss of $25.7 million a year earlier and $50 million in the fourth quarter. Reginelli said the GAAP result was primarily driven by negative mark-to-market adjustments on digital assets and elevated IPO-related stock-based compensation expense. Stablecoin-as-a-Service revenue was $38.2 million, up 44% sequentially, while the take rate improved to 7.4% from 5.5% in the fourth quarter. Reginelli said growth was driven by client adoption, product enhancements and new partnerships. Belshe said stablecoin infrastructure remains one of BitGo’s most important long-term opportunities, with use cases expanding across payments, treasury management, settlement, tokenized asset infrastructure and embedded financial applications. During and shortly after quarter-end, BitGo launched BitGo Mint, a portal for clients to mint, burn and convert stablecoins. The company also announced stablecoin-related commercial partnerships with StableC, SoFi and The Better Money Company. Belshe said BitGo extended its USD1 contract and described that partnership as “fantastic.” In response to analyst questions, Belshe said demand for stablecoin infrastructure remains strong as market participants evaluate potential legislation, including Clarity and GENIUS. He said companies with broad user distribution face a strategic choice about whether to launch their own stablecoins and participate in related economics. BitGo ended the quarter with 5,569 clients served, up 42% year over year, and 1.2 million users, Belshe said. Reported assets on platform were approximately $63 billion, and reported assets staked were $11.8 billion, both lower in dollar terms primarily because of lower digital asset prices. On a price-normalized basis, Belshe said assets on platform grew 29% year over year and 10% sequentially, while normalized staked balances grew 21% year over year and 27% sequentially. Bitcoin and Ethereum balances on the platform grew 131% year over year and 7% sequentially. Staking revenue was $49.4 million, down 66% year over year and 15% sequentially, primarily reflecting lower token prices. Reginelli said the staking take rate increased to 16.1% from 7.6% in the fourth quarter and 12.5% a year earlier, driven by additional token onboarding and a more favorable validator mix, including Canton-related activity. Subscriptions and services revenue was $25.6 million, up 11% year over year and down 35% sequentially. Reginelli said the sequential decline reflected fewer one-time ecosystem and implementation projects compared with an elevated fourth quarter, rather than weakness in the recurring revenue base. Belshe said custody remains the entry point to BitGo’s broader platform, with clients expanding into trading, staking, financing, settlement and stablecoin services over time. He highlighted an expanded partnership with 21Shares, one of the largest issuers of cryptocurrency exchange-traded products, and plans with OKX to bring automated off-exchange settlement infrastructure to institutional clients trading on OKX in the U.S. The OKX initiative addresses institutional demand to separate custody from trading risk, Belshe said. In response to an analyst question, he said off-exchange settlement can help clients reduce and better quantify risk by avoiding the need to pre-fund assets on trading venues. BitGo also launched a unified financing platform and expanded Prime Services capabilities. Reginelli said the loan book was roughly $200 million outstanding with clients and that demand for borrowing, particularly in U.S. dollars, exceeds available supply. Belshe said tokenized equities could expand the opportunity for fully collateralized lending. For the second quarter, Reginelli said BitGo expects digital asset market conditions to remain broadly consistent with current levels, building on stronger performance observed at the end of the first quarter. Digital asset sales revenue is expected to remain broadly consistent with the first quarter, with comparable margins assuming a similar mix of derivatives and spot activity. Staking revenue is also expected to remain broadly consistent with the first quarter, while subscriptions and services revenue is expected to grow sequentially on a reported basis. Stablecoin-as-a-Service revenue is expected to grow modestly sequentially, supported by client adoption and new partnerships. Reginelli said total expenses in the second quarter, excluding direct costs tied to digital asset sales, staking and Stablecoin-as-a-Service, are expected to decline from first-quarter levels as IPO-related charges and stock-based compensation normalize. BitGo ended the quarter with approximately $186.6 million in cash and $167.1 million of Bitcoin held in treasury. Belshe closed the call by saying BitGo remains focused on building an institutional-grade digital asset infrastructure platform. He said normalized assets on platform and staked balances continued to grow despite lower reported asset values, which he said could support upside if digital asset prices recover. BitGo Holdings Inc is the digital asset infrastructure company delivering custody, wallets, staking, trading, financing, stablecoins and settlement services from regulated cold storage. BitGo Holdings Inc is based in NEW YORK. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BTGO Q1 Earnings Call Highlights" was originally published by MarketBeat. 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Image source: The Motley Fool. Wednesday, May 13, 2026 at 5 p.m. ET Chief Executive Officer — Michael A. Belshe Chief Financial Officer — Edward Reginelli Michael A. Belshe: Thank you, Rachel, and thank you everyone for joining us. Delivered strong underlying business performance in Q1 despite continued softness across the broader digital asset market. While market activity created pressure on our headline financial results, underlying monetization across the businesses remained strong and we continued to gain market share across assets under custody, trading volume and several of our product verticals during the quarter. We also continued to invest across product platform and go to market capabilities, while making meaningful progress across several strategic growth areas that we believe will matter over the long term. Before I go deeper into the quarter, I want to address an important point regarding the accounting presentation of our results as we expect this will be an area of investor focus. BitGo today operates multiple businesses across trading, staking, stablecoin infrastructure, settlement, and other related services. Under GAAP, different parts of the platform are recognized differently for accounting purposes, with certain activities reflected on a gross basis and others reflected on a net basis. As the business continues to scale and diversify, reported revenue alone does not always capture the underlying economics or monetization profile of the platform. The January, we launched derivatives, within our digital asset sales business. Adoption has been encouraging, with approximately $3 billion in notional derivatives trading volume in Q1 alone. As a result, a portion of our client activity shifted from spot trading to derivatives products, That mix shift matters when evaluating our reported revenue. Because spot trading activity is reflected on a gross basis the derivatives are reported on a net basis. As a result, the sequential decline in total revenue does not fully reflect the underlying platform economics. And reported revenue comparisons to prior periods are not directly comparable. More broadly, we believe investors should evaluate the business through the underlying margins, take rates, and net economics after direct transaction related costs associated with each of our core revenue streams. We are building institutional grade digital asset infrastructure, the secure regulated control layer that institutions rely on to build within digital assets. Our clients increasingly want integrated workflows across regulated custody, trading, financing, settlement, stablecoin infrastructure, and related services through a single trusted partner. We continued to strengthen that foundation throughout Q1, and we believe its importance will only increase as the market matures. We view custody as the entry point to the broader Bitcoin platform, and the foundation of our client relationships. Clients establish trust, bring assets onto the platform, and increasingly expand into our other products and services with a single integrated framework. This land and expand strategy is central to how we deepen client engagement. it is how we increase workflows across the platform and drive long term platform value. Also continue to see growing participation in the space from traditional financial institutions. Including asset managers, issuers, and other large counterparties. In our view, this remains 1 of the most important long term tailwinds for BitGo. These institutions are generally not building infrastructure from scratch. They are looking for trusted partners that can support digital asset adoption in a regulated and scalable way. This is exactly where BitGo is focused and where we believe we are differentiated. Our advantage is the combination of regulatory standing security architecture, and the breadth of capabilities we provide within a single integrated platform. Operationally, this was reflected in a continued deepening of client engagement across the platform increasing our number of clients served to 5.57 thousand up 42% year-over-year, and users to 1.2 million despite broader market headwinds. Reported assets on platform at the end of Q1 were $63 billion and reported assets staked were $11.8 billion both down from prior periods in dollar terms, primarily as a result of lower digital asset prices during the quarter. Because digital asset prices can materially impact reported asset values, we also evaluate underlying asset growth on a price normalized basis. We believe this more accurately reflects the fundamental growth of the business client inflows, and BitGo's continued market share gains independent of the market price movement. Using current quarter digital asset prices across all periods, normalized assets on platform actually grew 29% year-over-year and 10% sequentially. Normalized stake balances grew 21% year-over-year and 27% sequentially. Bitcoin and Ethereum balances on the platform grew 131% year-over-year, and 7% sequentially. Taken together, we believe these demonstrate continued underlying momentum across the business despite the broader market volatility. Let's now dive into some key operational and commercial highlights from Q1. A key focus throughout Q1 was continuing to broaden the reach of our institutional platform through expanded commercial relationships and partnerships. For example, in Q1, we significantly expanded our partnership with 21.co, 1 of the world's largest issuers of cryptocurrency exchange traded products. This highlights the underlying demand for regulated crypto exposure in key markets around the world including throughout Europe, and builds upon Bitcoin's existing markets. Additionally, just a few weeks ago, we announced plans with OKX, a leading crypto exchange, to bring automated off exchange settlement infrastructure to institutional clients trading on OKX in The U.S. This is an example of BitGo helping solve structural challenges in institutional trading, which has historically required institutions to prefund assets on exchanges and take counterparty risk against those exchanges. It addresses the growing demand from institutions to separate custody from trading risk. We believe this is a major milestone for the industry, clearly establishing BitGo as the leader in institutional settlement. Beyond these announced partnerships, we also deepened relationships across a broader set of institutional clients, exchanges, asset managers and ecosystem partners during the quarter. Including several strategic engagements that have not yet been publicly disclosed. These partnerships are important not simply because of their headline value, but because they reflect the increasingly strategic role BitGo plays within the institutional digital asset workflows. They demonstrate that institutions are choosing BitGo, not only for custody, but as a premier, core infrastructure partner to support broader operational and financial activity. Throughout the quarter, we continued to extend product capabilities into strategic growth areas. As I touched on earlier, we launched derivatives trading in January to support growing client demand for tools that help manage volatility, hedge exposure, generate yield, and structure risk more efficiently. Adoption in Q1 of launch has been encouraging, and we have already seen meaningful engagement across the platform. Importantly, some existing spot clients are now incorporating derivatives into broader workflows with BitGo, which is exactly the type of cross product adoption we want to drive over time. Stablecoins are another area where we made meaningful progress and where we continue to see significant long term opportunity. We have said consistently that stablecoin infrastructure can become 1 of the most important growth areas for Bitcoin over time, and this quarter reinforced that view. Stablecoin infrastructure is 1 of the clearest examples of how Bitcoin's platform extends beyond trading into broader financial and payments workflows. During and shortly after quarter end, we launched BitGo Mint, a 1-stop portal where clients can mint, burn, and convert stablecoins from 1 type to another. We also continue to support clients and partners across reserve management, transaction processing, and the broader operational stack around stablecoins. We look at client conversations today, the range of stablecoin use cases is getting broader across payments, treasury management, settlement, tokenized asset infrastructure, and embedded financial applications. We believe Bitco is well positioned to benefit from these trends, and we are pleased to announce several Stablecoin related commercial partnerships, including with Stable.io, SoFi, and the Better Money Company. On financing and broader institutional workflows, we launched our unified financing platform and further expanded Prime Services' capabilities including additional risk management, structured products, financing, and treasury tools. These investments are strategically important. Each time we add a new capability, that helps clients keep more workflows inside the BitGo ecosystem. We deepen client engagement, increase the overall utility of the platform, and make BitGo more central to how those clients operate. Geographic expansion has also remained an important priority, This quarter, BitGo was named Issuer and Primary Custodian for FYUSD, US dollar backed stablecoin designed for institutional adoption across Brian markets. In Europe, beyond the 21.co partnership, we added new traders to Bitcoin Prime's liquidity network in April, improving execution for our clients, on a regulated infrastructure. I would like to now provide some context on the financial results before I hand this over to Edward for a more detailed discussion. We were not insulated from the market environment. Softer market conditions reduced activities in parts of the business and the noncash markdown on our digital assets treasury weighed on GAAP earnings. However, despite this environment, the underlying economics of the business remained resilient relative to broader market conditions. as they were supported by continued market share gains improved monetization across several of our core business lines, and ongoing client engagement across the platform. At the same time, we continue to invest in the strategic areas we believe will drive durable long term growth, such as product, platform, regulatory capability, and go to market execution. Having operated through up and down cycles in our 13-year history, we believe periods like this often create the best opportunities to strengthen the business and deepen our long term competitive position. Looking ahead, some parts of the business remain sensitive to market activity and token prices, while other parts are benefiting from onboarding, product expansion and continued traction with clients and partners. I will take you through that in more detail, including the financial bridge for the quarter and the key drivers across each business line. Before I hand it over, I want to close with a broader perspective on where we see the industry heading. Institutions continue to move into digital assets. Stablecoins continue to become more relevant to real world payments and financial workflows. Tokenization continues to create new infrastructure needs. At the same time, regulatory clarity continues to improve across key jurisdictions, including constructive momentum in The United States around market structure and digital asset legislation such as the Clarity Act. We believe greater regulatory clarity is 1 of the key factors that can further accelerate institutional adoption and BitGo's total addressable market over time. Particularly as traditional financial institutions seek clearer regulatory frameworks before committing additional capital and resources into the digital asset market. As the market matures, clients increasingly want trusted, regulated, integrated partners rather than fragmented piecemeal solutions. We believe those structural trends continue to support the long term demand environment for BitGo. Periods like this often separate businesses that are simply exposed to market activity from businesses that are building durable value. Our role is not to call the market. Our job is to continue strengthening the platform, deepening the client relationships, and positioning the business to emerge stronger as adoption expands. We did that in Q1. Now I will turn it over to Edward. Edward Reginelli: Thank you, Mike, and thank you everyone for joining us today. Let me start with the consolidated financial view and then walk through each of our major offerings. In Q1, total revenue was $3.8 billion, up 113% year-over-year and down 39% sequentially. The year-over-year increase reflects a larger digital asset sales business and a broader contribution from Stablecoin as a Service, relative to the prior year quarter. The sequential decline was primarily the result of lower digital sales activity and a soft crypto market environment. As Mike noted, the headline percentage change overstates the decline in trading revenue as a portion of spot trading activity has shifted to derivatives, which are reported on a net rather than gross basis. For that reason, we do not think that analyzing total revenue alone fully captures the underlying economics of the quarter. While total revenue declined 39% sequentially, direct costs also declined at a similar rate. At the same time, margins and take rates improved across digital asset sales, staking, and stablecoin as a service. As a result, the sequential decline in total revenue was more pronounced than the change in the underlying economics of the business. Adjusted EBITDA loss was $1.7 million in the quarter compared with a positive $3.9 million in Q1 of last year and a positive $12.1 million in Q4. The year over year and sequential change reflected weaker market conditions, lower subscriptions and services revenue and continued investment in the business, It also included approximately $3 million of 1-time legal, professional costs, other 1-time charges associated with the IPO process and other strategic initiatives. GAAP net loss was $60.7 million in the quarter compared with a net loss of $25.7 million in Q1 of last year and a net loss of $50 million in Q4. The primary driver of that result was negative mark to market adjustments on digital assets. As well as elevated IPO related stock based compensation expense. Which we expect to normalize from Q1 26 levels going forward. Let me now move to the offerings. Starting with digital asset sales. Revenue for digital asset sales was $3.7 billion, up 128% year-over-year and down 39% sequentially. While overall trading activity reflects a weaker market environment the underlying economics of the business improved during the quarter. On a normalized basis, excluding the accounting impact of the derivatives mix shift, our underlying trading economics outperformed the broader market sequentially and significantly outperformed on a year-over-year basis. We believe this reflects continued market share gains in institutional digital asset trading. Overall margin was 32 basis points, compared with 20 basis points a year ago and 24 basis points in Q4. Primarily driven by the contribution from derivatives activity following the launch of the offering on January 1st. Strategically, we view derivatives as an important extension of Bitco's platform. Clients increasingly want integrated workflows that include risk management, hedging, yield generation, and structured solutions alongside spot execution. Expanding those capabilities strengthens client engagement and increases strategic relevance of our trading platform over time. Turning to staking, revenue was $49.4 million, down 66% year-over-year and 15% sequentially. Primarily reflecting lower token prices. Staking take rates increased 16.1% from 7.6% in Q4 and 12.5% in the prior year quarter. Driven by additional token onboarding and a more favorable validator mix including the contribution of the higher economics of the Canton related activity. While the current mix may vary over time, the broader take is that we are improving the economic quality of this business line, while continuing to expand token support. Subscriptions and services revenue was $25.6 million, up 11% year-over-year and down 35% sequentially. The sequential decline primarily reflected a lower level of onetime ecosystem and implementation oriented projects Compared with Q4. When activity in this area was elevated. While these projects are not recurring in nature, they remain strategically important because they often support token onboarding, client implementations, and broader downstream revenue opportunities across the platform. As a result, we do not view the sequential revenue decline as representative of the underlying health of the recurring revenue base. Stablecoin as a service continued to be the bright spot during the quarter. Revenue was $38.2 million, up 44% sequentially. Take rate improved to 7.4% from 5.5% in Q4. Growth was driven by continued client adoption, product enhancements, and new partnerships. View stablecoin infrastructure as a significant long term growth opportunity for BitGo, supported by expanding adoption across payments, settlement, treasury management, and broader financial applications. Finally, interest income was $900 thousand up 259% year-over-year and 89% sequentially. Turning now to expenses. Most important point is that the quarter reflects both temporary and strategic factors. We incurred approximately $3 million of 1-time legal and professional fees related to the IPO process and other strategic initiatives. Our stock based compensation of $11.2 million was also elevated during the quarter, compared to $800 thousand in 2025. We expect a moderation in share based expense on a go forward basis. During the quarter, we continued to invest in talent, product development, and platform capabilities as part of a deliberate long term strategy. Are managing the business with discipline, but we are not managing the business to maximize 1 quarter of profitability at the expense of our long term growth opportunity. Our balance sheet remains strong, including approximately $186.6 million of cash and $167 million of Bitcoin held in treasury on the balance sheet as of the quarter end. Combined with our capital light model, this provides the flexibility to invest through the current cycle support client activity across the platform and pursue strategic growth opportunities from a position of strength. I would also like to briefly touch on the higher interest expense in the quarter. This reflects funding used to support customer borrowing and lending activity on the platform. Importantly, this was operational in nature rather than corporate financing and helps enable revenue generating client workflows within the business. Moving now to our outlook for Q2 2020. Based on quarter to date trends, we are assuming that digital asset market conditions will remain broadly consistent with current levels, building on the stronger performance observed at the end of Q1. Digital asset sales revenue is expected to remain broadly consistent with Q1 with margins anticipated to be comparable, assuming a similar mix of derivatives and spot trading activity. Current trends indicate strong year-over-year growth for the quarter. Staking revenue is expected to remain broadly consistent with Q1, supported by continued growth in staked assets despite ongoing price volatility. in key tokens. Subscriptions and services revenue is expected to grow sequentially on a reported basis, supported by client growth across custody and wallets, while also benefiting from nonrecurring ecosystem and implementation related work. Stablecoin as a service revenue is expected to grow modestly sequentially supported by ongoing client adoption, and new partnerships. Total expenses for the second quarter, excluding direct costs associated with digital asset sales, staking, and stablecoin as a service are expected to decrease from Q1 levels which were driven by IPO related charges during the quarter and normalization of stock based compensation, the company will continue to invest in long term platform growth and go to market execution. With that, I will turn it back to the operator to open the call for questions. Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1 on your telephone keypad. To withdraw your question, press 1 again. Please pick up your handset when asking your question. If you are muted locally, remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of James E. Yarrow with Goldman Sachs. Your line is open. Please go ahead. Analyst (James E. Yarrow): Good afternoon, Mike. I would love to just get a little bit of an update around the stablecoins and service demand from partners and, I guess, how this has evolved as the Clarity Act progresses? And then maybe longer term, how would you expect the act passing to impact the demand? Michael A. Belshe: Hey. Thanks, James. Appreciate the question. Good to speak to you all. In terms of stablecoins, continues to grow strong. I mean, basically, everybody's out there looking at clarity and genius, which does not allow interest. And so if you have a broad distribution of users at your bank or financial institution, you are faced with a choice. Do you, a, launch your own stablecoin and then be able to participate in the yield, use it with your partner, use it with your business in some way, or do you give that up to somebody else who is going to instead take that? So in general, just strong interest. I know others have cited, you know, lengthy pipeline. Got a couple of deals we cannot announce yet. but continues to look really positive. Also, we did just extend our USD1 contract so we are happy that partnership has been doing fantastic. Analyst (James E. Yarrow): Thanks, Mike. that is really helpful. Maybe just as a follow-up, sort of a similar question around tokenization facilitating, you know, tokenization projects and how you see the opportunity set for your business there. Michael A. Belshe: Look. I think tokenized equities have really exploded in the last 6 months. there is at least 4 kind of different models for how to bring tokenized equities to market. We are proud that we participated well, actually, we are participating with all of them just as know, we are infrastructure. So 1 of the benefits of being infrastructure is that you know, we participate on all of these, and then we work with the clients to kind of force them. I think the market's gonna figure out which of these work best. So, you know, the first 1 that we are proud of is, you know, we are the sole custodian within the figure market ecosystem. and they started, I think, in February. Obviously, they have got 1 model which uses, you know, provenance and figures ATS. So that is been kicked off On top of that, there is tokenized wrappers, that exists, as a couple of different players pursuing that. You saw DTCC just announcing that they have got a plan to go to market. We will be participating with all these, and we think it opens up our business tremendously you know, kind of towards how we grow in the direction prime brokerage. So, anyway, we are very excited about this. We are heavily investing in it, and more to come. Analyst (James E. Yarrow): Very helpful. Thanks, Mike. Operator: Your next question comes from the line of Peter Christiansen with Citi. Your line is open. Please go ahead. Peter Christiansen: Thank you. I appreciate the question here. Mike, back on the claims as a service, what degree is BitGo involved in the design and construction of the networking, meaning connecting with other partners, which may not be a part of the Bitco client ecosystem, my thinking is there is an opportunity from a lead gen perspective for services with stablecoins as a service emanating from 1 particular client to others. Just wondering if you could provide some color on that. And curious on any learnings here on scaling this business and what it could mean for potentially large l 1 as a service at some point. Thank you. Michael A. Belshe: Brett. Thanks, Peter. Let's see. On the first point about stablecoins, I am glad you are hitting this it is a little bit of a subtle point, but, you know, 1 of the advantages that Bitco has, you know, with the large client base is that anyone that launches their stablecoin directly with BitGo immediately plugs into an entire network. And if you recall, you know, at the bottom of our stack, we have our self custody wallet platform. that is distributed all over the planet, hundreds of exchanges of broker dealers are using that. As soon as you light up on the BitGo API, you light up on all of those parties. Additionally, so I think you know, some of the traditional folks that are coming into the space, are a little bit more you want to use Peter Thiel's analogy of 0 to 1, they are really more like the 1 to many and BitGo is kind of like the 0 to 1. I do think it is a different skill set of how do you take a product which currently is not deployed and get the flywheel spinning and grow it. So Bitcoin's got tremendous reach into the DeFi ecosystem, into the crypto ecosystem, Obviously, we have got partners and hedge funds and venture funds and all others. So when folks use the BitGo platform for stablecoins, we definitely are actively working with helping them. And you have seen historically, there is been a few stablecoins that launched several years ago, and they pretty much stayed kind of at 0 for a long period of time. And that is because of not having necessarily really good go to market plans. So we definitely help our clients with this. We are motivated and interested and incentivized to do so. And I think that is 1 of the advantages of using the Bitcoin stablecoin platform. I am sorry. Yeah. The second part of the question, what did you ask again? Peter Christiansen: Oh, on the potential of taking learnings and the capabilities that you have as a service to potentially offering L1 as a service at some point? Michael A. Belshe: Oh, for BitGo? Correct. That topic's come up quite a bit, I think you know, some of the new L1s, particularly around stable coins, are hitting a new need that you know, the kind of the first generation of L1s did not solve. And that is the ability to pay fees in a kind of stablecoin. So both Tempo and ARC as you are probably aware, You know, if you are moving your stable coin, whatever fees you pay to the chain, can pay in the stable coin itself. Whereas when stablecoins are moving on Ethereum or Solana or whatnot, you always have to in addition to having the stablecoin, you have to have a little bit of the L1's token. So I think these innovations are going to frankly, they are kind of just required. I mean, it is annoying and a nuisance to have to pay kind of a foreign fee in order to move a stable coin. As for Bitcoin's own ambitions, there could be something. We have not announced anything publicly yet. But you know, stay tuned. Peter Christiansen: Thank you, Mike. Operator: Next question comes from the line of George Sutton with Craig Hallum. Your line is open. Please go ahead. George Sutton: Awesome. Thanks. Hey, guys. This is Logan hopping on for George. Mike, I wanted to start with sort of a specific 1 on Canton. Obviously, you were an early supporter there, and you made a few announcements since this year expanding that partnership. Seems like a blockchain that we keep hearing a lot about, and it is kind of getting more business. So I wonder if you could just walk through some of the different ways that you are set to benefit from their growth and just kinda give us a sense for where that relationship could go in the future. Michael A. Belshe: Sure. Thank you for the question. Let's see. So, Canton, I mean, you know, they have been a big supporter of digital asset. DRW Dan Wilson, for quite some time. We are proud to be the only qualified custodian on the network today. Canton deserves credit for really addressing early some of the institutional complaints that come with building up applications on blockchain, in particular, privacy, in particular, how you receive assets, you know, there is been concern about dust transactions on Bitcoin, Ethereum, etcetera. And they sold these products, and so they have been able to bring in a number of people. They also are, I think, having kind of a second mover advantage in terms of understanding how to distribute their own token, in a way that is fair and incentivize the network to and grow. Before having it kinda hit the market and liquidate and cause issues. So I think they are well-poised you know, the privacy, they are kind of the only permission privacy chain in town right now. And with the growth they have had, I think they are looking good. In terms of BitGo, 1 of the things that is interesting about BitGo and often difficult to describe is going into depth on a particular coin or an asset. I mean, we will say that, you know, hey. You know, Bitcoin has wallet support for pick your favorite coin or we have staking support. And it is easy to say we have the wallet. We have the staking But there is also a lot of depth that goes into that. Like, what features do you support on that coin? You know? What how many staking providers are you interoperable with? Like, what flexibility do clients have? And part of how we grow is by making sure that we can meet all of our clients' needs. So 1 example specific to Canton, it is kind of a funny 1, I think, but it is also really important. Mentioned these dust transactions. So you know, traditional finance is often worried. Well, like, you know, what happens when you are a financial institution, you receive these dust transactions, on this open network, And what if you did not want it? What if it is from, you know, a bad guy? How do you deal with that? Now, My own personal opinion is that in practice, these are not significant issues but these really do trip up regulators, legal teams, you know, extensively. Canton has a feature. Where you can accept, you know, all the deposits and prove them. So BitGo is not just integrated with the chain. We actually implement that feature. That particular feature then creates the demand for more features. It turns out that it is a little bit annoying to constantly have to approve every transaction that comes in. So then they want white listing and, you know, ability to kind of approve those in batch and things like that. So we build those. I think we are well poised. I think we are happy that we have the large network on Canton. Terms of the-- and we are able to integrate with the Go network and other things on the go forward. That should just continue to expand. George Sutton: Got it. Helpful color. Second, just a quick 1 for me. I mean, kind of putting the reporting differences aside, are you able to just kinda walk through how the net economics on spot volume compared to derivatives volume compare for you guys? Just wanna get a better understanding as this shifts over time. Kinda what we would expect to see on that net revenue. line. Michael A. Belshe: I will hand it to Edward in just a second, but some quick color. I think in the crypto markets, you will see the same thing that is happened in other markets. You know? Derivatives tend to be a better way, more economic way to trade in the industry. And so the volumes on the derivative side will continue to grow and eventually far outpace the spot markets. So we already saw in Q1 some conversion from spot market trading over to derivatives trading which was expected. And we hope to continue to grow that. So for just kinda 1 quarter of offering, we think that the results were pretty good, and we think that will continue. And then, of course, you know, kind of our margin on a derivative product is higher than what you would have in spot markets. So we are happy about that as well. Edward, do you want to add anything? Edward Reginelli: No, I mean, we were, as I mentioned, very excited to extend some more product within our trading platform. We have really strong client adoption and we are still very still excited about the spot trading business. Year over year, we have seen tremendous growth. We did go down sequentially, and that was really just due to the fact that in Q4, we had exceptional volume from a few key clients. But overall, we are excited about trading and expanding our capabilities and extending product launches there. George Sutton: Okay. Got it. Thanks, guys. Operator: Your next question comes from the line of Brett Knoblauch with Cantor Fitzgerald. Your line is open. Please go ahead. Brett Knoblauch: Perfect. Thanks, guys. for taking my questions. Maybe just on the segment stuff, the subscription services sequential decline was, a bit more than I was anticipating. And I know you guys called out maybe it was due to lower onboarding, or implementation fees. But could you maybe provide some just color on the underlying strength in that business? I know there is a number of kind of clients continue to increase. How did the subscription services do outside those maybe, you know, 1-time nonrecurring fees? Michael A. Belshe: Thanks, Brett. Off on the 1-time recurring pieces, if you understand what those are, you know, as we take on new coins and build them, sometimes they have got you know, particular technology components that are extensive, and so we do charge blockchains and others onboarding fees to do that. However, what we really want to make, you know, our impact in the world is with the ongoing recurring revenues that come from real clients. So yes, the onetime components came down. On the subscriptions and services, you know, I think it is been in line with where we would have expected it to be other than that we had less of the 1-time fees. The other thing I would point out is increasingly we are wanting to move the revenue kind of up the stack, as I have mentioned before, you know, the custody fees and subscription fees by themselves, and that is kind of a cost center to our clients. However, paying fees as our clients are doing work with trading and with staking and with borrowing, etcetera, Those are where they are making money. So it is a much more palatable place for our clients to pay us fees. That does change the mix a little bit, and it is 1 of the challenges in describing the business is that we have multiple products and services. And I do not have the stat. Maybe Ed has the stat, but, you know, we shared previously you know, about 72, 73% of clients are using 2 or more products. And then over half the clients using 3 or more products. So we think that, really, if we can bring clients in and we lead with you know, custody is the way they come in, and it is usually what we are known for, But they grow into these other products and services, and we think that is the strength. Edward Reginelli: No, we have seen tremendous growth in number of clients utilizing our custody and wallet products. And that is somewhat of a recurring revenue stream. So that story remains very strong. we did experience a very large volume, but, again, the big story there was in Q4, of ecosystem projects. Excluding that, the business performed very strong. Year on year, first of all, and then also sequentially. So, overall, we are still very optimistic about our customer pipeline and business, that part of our business growing. Brett Knoblauch: Awesome. And maybe if I could just follow-up on the staking side. Michael A. Belshe: Yeah. Go ahead, Mike. Yeah. Go ahead. Brett Knoblauch: Oh, I was going to say if you had another point on that. Michael A. Belshe: Yeah. Sorry. You know, the 1 of the things I would like to figure out how to do really well with all of you guys is how do we differentiate the BitGo performance from, you know, the market price volatility performance? And, obviously, we do not consider ourselves to be a huge impact on the latter, although, hopefully, we have an impact to some degree. But, really, we do wanna focus on the former. So the normalized numbers that we discussed on the call I think, looked pretty encouraging. As long as we are and it does not really matter where you pin the price to. You can pin it to the beginning of the period, the end of the period. In all cases, you know, we saw significant growth both on the assets on platform and also on the assets under stake. So the revenue that we will get on, you know, the, just the custody component will be down from the US dollar notional I am sorry. The US dollar pricing. But in terms of the actual assets on platform, we see good growth there. So we are happy about that for the future. Brett Knoblauch: Helpful. And then just on the staking front, obviously, assets staked declined. that is, you know, general declines in asset prices. But it looked like the take rate there ticked up a good bit if I am just doing beginning of period and the period average. Almost like doubled quarter over quarter. Guess, did you guys take up pricing on the staking side? Michael A. Belshe: Yeah. We had a couple of different things. We had a change in the mix of some of the partners that we work with, and then also some of the coins are stronger in terms of the rates we get on those. So those have been positive for us And then lastly, as we did note on the call, on a normalized basis, the overall assets under stake did grow. Remember the assets that you stake is basically the non Bitcoin assets, which is like, the 1 set of assets are even more volatile than Bitcoin. So yeah. Edward Reginelli: And 1 thing I will add to that is the--what was your last thought in my view? I think you covered it, Mike. Michael A. Belshe: You covered it. Okay. Yeah. Alright. Yeah. I knew what I was going to say. The only thing I would add is in addition to a positive validator mix, as we get to a certain size and volume with certain coins, we are able to push a lot of that staking capability for our own nodes. Where we appreciate a much higher margin. So that is also helping support. The margin growth. Edward Reginelli: that is a good flag. Thanks, Edward. Brett Knoblauch: Thank you, guys. Really appreciate it. Brett. Operator: Your next question comes from the line of Edward Engel with Compass Point. Your line is open. Please go ahead. Edward Engel: Hi. Thanks for taking my question. A question on the increased stablecoin take rate. Any more color on what is driving that? I know that there is moving pieces between partnership mix and then, I guess, maybe some transaction revenue. I just want to kind of get an idea of if transaction revenues actually start to drive that business rather than just interest income. Michael A. Belshe: Thanks. Actually, I think it is mostly that kick starting the business. We actually gave some discounts kind of on the early piece when coins are growing, and then now we have kinda graduated beyond that. So the take rate just goes up. As a result of that. that is the main 1. In terms of stablecoin conversions, we do we do a lot of stablecoin conversions. Those are relatively low margin, and those show up more in the trading side rather than under the stablecoin amount. Edward Engel: numbers. Thanks for that. for that. And then I guess on the OKX integration for off-exchange settlement, I mean, it kind of seems like it is just a matter of time before this structure becomes kind of the standard industry. Just curious, like, how do these integrations, I guess, help the business just economically? Is it more of a way to kind of gain and maintain market share, or are actually able to monetize some of those trading fees? Michael A. Belshe: Yeah, great question. What part of it is you get the access on platform, and then you have the ability to address those clients in many ways. So we are trying to help make the settlement network just be the strongest largest volume that is out there. And the most important place to be is on the, the large exchanges. So, you know, the big 3 is Binance and OKX and private. So this is this is 1 of the big ones, and we are really excited about the fact that we have it. And then in terms of how we make money, I think 1 of the 1 of the elements of the crypto industry that has not been fully considered you know, through most of our 10-year history, is how to price risk. So remember, when you are when you are doing trading, there is 3 components of pricing. Number 1 is okay, what is the cost of the underlying asset that you are trading? Number 2 is how much profit do you wanna take? 5 bps, 10 bps, or 100 bps. And then the third 1 is what is your risk? And because crypto markets are highly volatile, relatively new, require prefunding out of exchanges, The measurement of that risk is super tough. And, of course, the industry has seen big penalties like what happened when FTX had a blowout, you know, back in 2022. So the main thing that our clients get out of you know, having off exchange settlement is reduced risk and the ability to start actually measuring and quantifying the risk so that they can get their prices right. I think, so far, what is been happening is we have really wide margins, on the on the profit side, and then people just say, well, that is big enough. It will cover some of the risks that I am taking. Now with the ability to trade without having to prefund various venues, you take out that risk, and you can start to quantify it for real. This is gonna bring prices kind of back, and, you know, we see Charles Schwab came in, I think, Where were they gonna be at? 75 basis points on their retail trading? And then Morgan Stanley has now announced that they are gonna do 50 bps on their retail trading. You know, as they bring their rates down, they are going to increasingly have to figure out how they are going to measure and control the risk that they are taking. And I think they are going to find the BitGo settlement network to be a very satisfying place to be. Edward Engel: Great. Thank you. Operator: Your next question comes from the line of Brian Dobson with Clear Street. Your line is open. Please go ahead. Brian Dobson: Hey. Good evening. Thanks for taking my question. So at the top of the call, you spoke a little bit about growing your share of a client's business organically over time. Can you give us a little bit of color on what that looks like and how you are thinking about client acquisition cost? Michael A. Belshe: Yeah. Look. it is been 1 of-- thank you, Brian. it is been 1 of our key metrics, you know, since our IPO day back in January. But, I mean, before that internally, Look. Overall, the market is simply expanding. And what started out, you know, 10 years ago was primarily Bitcoin and then expanded into a few other assets and then ICOs, and now it is grown into stable coins and DeFi. Know, it is it is about to go into tokenized equities. So the more clients you have on platform, the more it means that your clients are gonna be able to match each other on the settlement network. and whatnot. So we look for partnerships where we can have a partnership that brings on more clients. The OKX platform, I am sorry. OKX integration is no exception. By doing that deal, we can now work to find clients that we have in common Sometimes we are helping OKX with getting more clients. Sometimes they are helping us with getting more clients. Yeah. Basically, anywhere that we can find a partnership where 1 client begets more clients, we consider that a win. Brian Dobson: Great. Thanks very much. Operator: Next question comes from the line of Joe Vafi with Canaccord Genuity. Your line is open. Please go ahead. Joseph Vafi: Hey, guys. Good afternoon. Thanks for the question here. Just maybe we talk about the loan book a little bit, how you are thinking about that strategically, you know, where it may go from here, how it is performing here in this spot volatility market, and then quick follow-up after that. Michael A. Belshe: Thanks, Joe. Edward, do you wanna answer on where we are at right now? Edward Reginelli: Sure. I will answer after that. Yes. So the loan book is currently roughly around $200 million outstanding with client facing We believe there is an incredible opportunity ahead of us. We had mentioned, Joe, in the past, but our problem is we have more demand than we have supply of dollars to lend. A lot of the clients are looking for US dollars to borrow. So we try to find unique ways of bringing in additional dollars Obviously, the IPO was very helpful. In bringing in some additional funds to the company to support the program. So we will continue to keep building that program. But, again, the opportunity that we see there is huge. Michael A. Belshe: And then just-- great. Adding to this part of why I am excited about the tokenized equities is, like, I think there is tremendous demand to borrow against fully collateralized, you know, fully collateralized positions, against all kinds of things. And while there was a healthy market, you know, borrowing against fully collateralized Bitcoin. there is a lot more people that have equities that they would be willing to apply towards this than there are people that are holding just Bitcoin. So we think it is gonna greatly grow the market once we have got tokenized equities on chain. Joseph Vafi: that is great. I did not actually think about that, Mike, and opening up that margin lending market on tokenized equities. And then Yeah. Just maybe yeah, we maybe kinda talk about a little bit of the mechanics of maybe some of your customers switching some trading volume from spot to derivatives. You know, it feels like if they wanted to do derivative trading volumes, they could perhaps have been doing those away from you, to begin with. So just, you know, wanted to drill down on the motivations of clients of you know, of that mix shift from their end. Thank you very much. Michael A. Belshe: Thanks, Joe. Look. 1 of the least sexy things that we do, but probably the most important things that we do is getting the regulatory standing right behind what we do at BitGo. So our clients very much appreciate that we are OCC chartered national bank. They very much appreciate the regulatory standing that we have across the globe, whether you are talking about Germany or Dubai or Singapore. And in general, once they have gone through the onboarding and diligence process with BitGo, it is difficult to replicate that with multiple partners. So you are absolutely right. They could have traded in derivatives last year, the year before with a number of different parties. Oftentimes, that means opening accounts offshore. Oftentimes, that means just, you know, opening accounts with you know, crypto native firms that may not match the kind of profile that they are they are looking to work with. So the desire to have this 1 stop where they come to BitGo, we are their counterparty. They know who we are. They been through our insurance. They have been through our SOC 1 or SOC 2. And all of our regulatory analysis. And now they are they are ready to do these activities. So right. They would have participated before. They just did not have quite the right partner. Operator: And they are very happy to have Vicco helping. In the interest of time, we ask that you please limit yourself to 1 question only for the remainder of the Q&A. Your next question comes from the line of Christopher with Rosenblatt. Your line is open. Please go ahead. Analyst (Chris): Hi. Thanks, and good afternoon, guys. Just wanted to dig a little deeper on the derivatives business. Obviously, it is still early days, but a good start for that business. And just wanted to know you know, as you think about the impact on the net margin there, is it safe to assume that the increase you have seen there is the majority of the increase seen there or maybe all of the increase we have seen in that net capture rate has been due to the addition of derivatives revenue without a denominator impact? And then can you talk at all about how you expect that business to contribute in the second quarter? And then I also had 1 follow-up on the stablecoin-as-a-service business just, you know, sort of more detail on the growth and partners there and how the book will look as you grow away from just having World Liberty, you know, how significant are the non-World Liberty assets expected to be as you progress through the year? Thank you. Edward Reginelli: Thanks, Christopher. I can add to that. Yes. So the take rate or the margin that we saw during Q1 as we referenced, was benefiting from the net reporting of derivatives. If you just look at the spot business, it is very consistent To what we experienced in Q4. So there. Those margins have not varied very much. And we have continued to experience that into the future. As we get more and more of the derivative trades that will hopefully help influence our net take rate much higher. To the future. Michael A. Belshe: And then on the, stablecoins, I am not sure how to quite answer it. We do have some clients that we cannot preannounce. it is unfortunate. So we cannot announce clients that are not ready to be announced yet. So, unfortunately, I am gonna have to ask you to stay tuned. On the I guess, thing I did not mention, but, you probably have seen it, This last quarter, we did launch what we call our Mintz and Burn Center. it is a place where all of our you know, 5.6 thousand clients can mint and burn directly in the assets that are straight from BitGo. We have got partnerships You know, the intention is not to limit it to just the Bitco stablecoins. And then you can convert between stablecoins all kinda right there. Additionally, you can do programmatically, so it is super easy. If you have got your agentic bots running, they can completely do API, do these types of conversions as well. I think there is probably more agentic announcements that have happened so far than real meaningful deployments, but we do see this as an important part for the future. Operator: Your next question comes from the line of Dan Dolev with Mizuho. Your line is open. Please go ahead. Dan Dolev: Hey, guys. Really nice results here. Congrats. From us. Have a question on the bank and trust. So Bitcoin now holds bank and trust, National Bank Charter from the OCC. This puts you in our view in a pretty exclusive category amongst crypto native firms. Maybe beyond the obvious trust and compliance signaling what does the charter concretely unlock in terms of new revenue lines? Thank you. Thanks for asking. Michael A. Belshe: Actually, by the way, 1 thing I would like to impress upon folks that may not be aware of kind of BitGo's history I think we might be the first OCC charter bank that converted in a day. And usually what happens is and there is a lot of people that are in the application process with the OCC. Usually, what happens is you get a conditional approval, and then it can be, like, 9, 12, 18 months while you go and build the necessities for the OCC level of a bank. In BitGo's case, we were conditionally approved We had to write a check to fill the regulatory capital in the next day we were operating. So you know, doing these activities is something we have been doing for a long time. And so to answer your question, the reason that is important is because you know, when we built, you know, Bigo Trust Company out of South Dakota back in 2020 it was pretty limited in scope of what it could do. I mean, all we wanted to do is to be able to kinda hold these assets in a fiduciary manner in a way that was bankruptcy remote, that was safe for clients, our institutional clients to understand. But then every time we wanted to do something new, it was, like, more licensing. It was more updates to the business plan, working with regulators, and it was it was kind of slow. So as we went into the OCC process, you know, we put everything in there. So from trading to staking to, of course, custody, etcetera, these are all things that the regulator is familiar with in our business. it is part of our business plan. The OCC has worked with us on and by the way, they have been great. Really appreciative of their efforts there. So overall, we feel like we have got the best standing with that OCC charter and the business plan that is approved. In there. So it is pretty all inclusive. So I do not know if you had a particular area that you wanted to drill into, but I mean, look, obviously, the services that we have up on top of custody already. Those are where we are growing, and then this all grows towards prime brokerage. Operator: Your next question comes from the line of Cassie Chan with Wells Fargo. Your line is open. Please go ahead. Analyst (Cassie Chan): Hey, guys. Thanks for taking my question. I just wanted to ask, you know, it seems like the number of clients continues to grow and ticked up again this quarter. How has the profile of these clients have changed in terms of AUM, or are they actually using, you know, multiple products in addition to custody? Right from the start now? Just curious if that is evolved as well. Thank you. Michael A. Belshe: Thanks, Cassie. Well, as I mentioned earlier, look, we have a lot of crossover between our services for our clients. That continues to do well for us. We should probably measure it for the next the next reporting period. Maybe we will talk about it next time more. But it is all, I think, been positive. The profile of the client is changing in terms of we have the whole new addressable market, which is the traditional financial firms coming to Bitcoin. So we also have some announcements here that are not yet announced yet, but deals that are already signed in ink which you will be hearing about, I think, in this quarter, which are exciting from firms that, you know, just a year ago, would not have been listed in any type of crypto or digital asset related product. So we are seeing that shift I do think clarity, remains the next I do not know if I want to call the hurdle, maybe the next, graduation point. Where a number of maybe the more conservative firms will also be looking and solidifying their digital asset plans. But right now, it seems like everybody's growing, and you can see there is a heated race among the new entrants to try to be fastest and the best. So I think that is creating a bit of FOMO among those players that have not been in digital assets yet and we are seeing all of those and all of those RFIs and all those RFIs. Operator: Your final question comes from the line of Steven Glagola with KBW. Your line is open. Analyst (Steven Glagola): Hi. Thanks, Mike, and Edward for the question. Could you unpack more on some of the prepared remarks around how you guys are thinking about balancing the reinvestment and strategic growth initiatives around product, platform, regulatory capability that you called out, while also driving operating leverage for, you know, sustained positive and growing EBITDA over time? Thank you. Michael A. Belshe: Yeah, great. So we have been through, I think, 3 or 4 kind of up and down cycles in Bitcoin over the years, and you know, sometimes these down cycles are the best times to be building. And, especially, you know, AI is absolutely helping us on the build. So we do not see any need for, like, additional cost of any material type. Of course, you are always watching to see you know, where are the cost of the business. We did have onetime expenses around, you know, the IPO itself and some legal costs that are associated with that. I think those were typical. And then for the most part, like, we are we are building. I think there is a strong demand for this tokenized equities component and you know, being first. Know, 1 of the things we have is I think, the broadest support of L1s and L2s of any major custodian, certainly much larger than Coinbase and Anchorage. And staying ahead there does require, you know, that we continue to build. So we will continue to build there. But of course, we are always watching the bottom line. We wanna make sure that we are building a healthy business. Think that we are well within those parameters right now. And then as the market exits its bear cycle, I think you are going to see real wins on all the economic measures out of BitGo. Operator: We have reached the end of the question and answer session. I will now turn the call back to Mike Belshe for closing remarks. Michael A. Belshe: Thanks, everybody, for joining us today. To close, I just want to come back to 3 points. First, underlying monetization has held up better than the gross revenue presentation would suggest. We are encouraged to see our team launching our derivatives trading products as we talked about our overall our high overall margin and take rates across digital asset sales, staking, and stablecoin-as-a-service are great. Second and most importantly, we continue to strengthen the business itself. We launched new capabilities, expanded business lines, added clients and partners, We advanced the stablecoin infrastructure and continued investing in the people and the platform. That we believe will drive long term benefits and grow. that is the business we are building, and it is the lens through which we believe investors should evaluate our progress as well. Finally, BitGo remains uniquely positioned as the institutional grade digital asset infrastructure platform, the secure, regulated control layer for digital assets, and all the new entrants see that capability. Our advantage is the combination of regulatory standing, security architecture, and the breadth of capabilities that we provide within a single integrated platform. We are operating in a large and evolving market, we continue to see encouraging demand across all areas of the business, Importantly, while reported asset values were impacted by lower digital asset prices during the quarter, the normalized assets on platform and normalized staked balances continue to grow meaningfully which we believe will drive upside in our model as the digital asset prices recover. So thank you, everybody. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Goodbye. Before you buy stock in Bitgo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitgo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BitGo (BTGO) Q1 2026 Earnings Transcript was originally published by The Motley Fool