Digital asset infrastructure provider BitGo disclosed a widening net loss for the first quarter ended March 31, as significant mark-to-market losses on its Bitcoin treasury and expenses related to its initial public offering offset robust revenue growth. The company announced that quarterly revenue reached $3.8B, representing a substantial year-over-year increase from $1.8B, fueled by heightened digital asset trading activity and expanding contributions from its stablecoin business. Despite this annual surge, revenue declined 38.7% compared to the $6.2B recorded in Q4 2025, a contraction attributed partly to a strategic shift in client trading behavior from spot markets to derivatives. This new derivatives product, launched at the beginning of the quarter, generated approximately $3B in notional volume, signaling a changing landscape in institutional trading preferences.

The financial pressure manifested in a net loss that expanded to $60.7M from $25.7M in Q1 2025. This deterioration was primarily driven by a $53.7M non-cash loss resulting from the declining valuation of the company's Bitcoin treasury holdings, alongside stock-based compensation costs incurred following its recent IPO. Management indicated that these stock compensation expenses are expected to normalize in future periods.

Concurrently, Adjusted EBITDA swung from a gain of $3.9M a year ago to a loss of $1.7M. This operational shift included $3M in one-time legal and professional fees directly tied to the IPO process, highlighting the transitional costs associated with entering the public markets.

On the platform side, BitGo demonstrated strong user acquisition metrics, with the client count growing 42% year-over-year to reach 5,569 institutions. These clients encompass hedge funds, exchanges, fintech companies, and other enterprises integrating with BitGo's infrastructure. Data compiled by Woofun AI shows that total users on the platform also expanded to 1.2M, marking a 7.3% year-over-year increase. This growth underscores the deepening reliance of institutional players on specialized custody and infrastructure solutions despite broader market volatility.

Revenue streams within the business showed divergent performance trends during the quarter. Stablecoin-as-a-service revenue surged 43.6% to $38.2M, reflecting increased demand for stable digital currency solutions. In contrast, staking revenue plummeted 66.2% to $49.4M, a decline directly correlated with lower token prices across the market. By the end of the quarter, BitGo held $186.6M in cash and maintained a Bitcoin treasury of 2,449 BTC, valued at approximately $167.1M. Following the earnings release, BTGO shares slipped 1.09% in overnight trading to close at $11.78.

The broader cryptocurrency sector faced similar headwinds in the first quarter of 2026, with multiple major entities reporting deepening losses amid the market downturn. Coinbase swung to a net loss of $394.1M, missing revenue estimates of $1.5B with actual revenue of $1.41B. Exodus Movement saw its losses more than double to $32.1M as revenue dropped 36.8% and active user counts slid. Woofun AI notes that Bitcoin miners, including Riot Platforms, Core Scientific, CleanSpark, and TeraWulf, all posted widening losses in Q1 2026. MARA topped the group with a $1.3B net loss, roughly $1B of which stemmed from non-cash mark-to-market adjustments on Bitcoin holdings, illustrating the systemic impact of asset valuation swings on the industry's balance sheets.