According to reports from BitGo Holdings, the company reported $4.33 billion in second quarter revenue, representing a 79.6% year-over-year increase from $2.41 billion in the same period last year. Digital asset sales generated $4.20 billion of revenue, up 84.3% year over year, though the business incurred $4.19 billion of related direct costs, leaving approximately $7.1 million of margin. The trading margin fell to 17 basis points from 32 basis points in Q1 due to lower spreads on spot trades and a smaller derivatives mix. As reported by TradingView News, the revenue also rose 14.7% quarter over quarter, demonstrating consistent growth momentum.
As reported by BitGo Holdings, the company ended the quarter with 5,833 clients, up 26.2% from 4,621 a year earlier. Platform assets were $65.2 billion, down 27.8% from $90.3 billion on the unadjusted comparison. Using current quarter median digital asset prices to remove price effects, BitGo calculated normalized assets on platform at $65.2 billion, up 31.4% year over year. Normalized assets staked rose 36.1% to $11.9 billion, while staking revenue fell 28.8% to $64.7 million.
According to BitGo Holdings, the company posted a $19 million net loss compared with $38.3 million net income a year earlier, though this represented a significant improvement from the $60.7 million loss in Q1. The year-over-year earnings reversal was partly driven by BitGo's own digital assets, booking an $18.8 million unrealized loss during Q2 compared with a $55.8 million unrealized gain a year earlier. As reported by TradingView News, CEO Mike Belshe acknowledged during the earnings call that Q2 financial performance fell short of expectations, stating "While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix." The company recorded $1.3 million of restructuring costs after cutting nearly 15% of its workforce in June, with management expecting $9 million of annualized savings beginning in Q3.
According to TradingView News, BitGo authorized a share repurchase program of up to $50 million as part of its capital allocation strategy. The company expects its cost-cutting measures to generate about $15 million in annualized cash savings. BitGo shares fell 1.8% in overnight trading to $4.90 after closing Wednesday up 0.6% at $4.99, according to Yahoo Finance. For Q3, management expects reported revenue to be relatively flat versus Q2 performance in digital asset sales and forecasts broadly stable staking revenue, with the outlook assuming digital asset prices and market activity remain near recent levels.
