BTGO earnings call transcript, November 9, 2026

Ladies and gentlemen, thank you for standing by. My name is Krista and I will be your conference operator today. At this time, I would like to welcome everyone to the BitGo Holdings third quarter 2026 earnings call. All lines have been placed on mute to prevent.

any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star, send the number one on your telephone keypad. And if you would like to withdraw your question, again, press star one. Thank you. I would now like to turn the call. over to Rachel Dye, head of investor relations. Rachel, please go ahead.

Thank you. And good afternoon, everyone. Our remarks today will include forward-looking statements. These include statements about our operating outlook, financial conditions. Business strategy, market opportunity, and future plans. Actual results may differ materially from these statements. Information about risks and uncertainties appears in our SEC filings under the heading Risk Factors in our annual report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements we make today reflect our views. only as of today. We undertake no obligation to update them except as required by law. We will also discuss GAAP and non-GAAP financial measures. A reconciliation of each non-GAAP financial measure to the most directly comparable measure calculated in accordance with GAAP is contained in our earnings release and investor presentation, each of which is a available on the investor relations section of our website at investors.bitgo.com. Non-GAAP measures should be considered in addition to and not as a substitute for GAAP measures. Joining me today are Mike Belshi, co-founder and CEO, Chen Feng, chief revenue officer, and Ali. Vopra, BitGo's new chief accounting officer. Ali joins us from KPMG. Mike, over to you.

Thank you, Rachel, and thank you all for joining us today. During the third quarter, we continued to strengthen BitGo's institutional platform and improve the operating efficiency of our business. Total revenue was... $2.9 billion. Net income was $44.1 million. And adjusted EBITDA was a loss of $4.3 million. Our revenue and performance reflected continued weakness in digital asset trading activity. Following the increase in digital asset prices in mid-August, approximately two-thirds of our clients who traded with us in Q2 traded less in... Digital asset sales margin was approximately 15 basis points on the quarter, driven by a higher mix of activity from lower margin stablecoins. On the expense side, we continue to improve operating efficiency, with our second quarter cost reduction initiatives contributing to lower operating efficiency. We also continue to make meaningful progress, leveraging AI to improve engineering productivity. Since the beginning of the year, engineering output is up 65%, while we have simultaneously reduced engineering headcount, token costs, and overall AI spend. Separately, we reduce cloud... ...infrastructure costs by migrating select workloads from AWS to our own infrastructure. These advances are enabling us to accelerate innovation, expand our capabilities, and offering to our clients, and continue playing a leading role in developing the market structure that will shape the future of...

Lastly, during the quarter, we repurchased approximately $25 million of our common stock under our $50 million authorization, reflecting our confidence in the BitGo long-term opportunity and our commitment to disciplined capital allocation. We will discuss the financial results in greater detail shortly. First, let me cover the key operating and strategic developments during the quarter. Turning to our operating highlights. At the end of Q3, using actual September 30th digital asset prices, assets on platform exceeded $83 billion and assets staked were approximately $6 billion. On a reported basis, assets on platform declined from $65.2 billion to approximately $59.9 billion, while reported assets staked declined from $11.9 billion to approximately $10.5 billion. These declines reflect... ...like lower median digital asset prices used in our quarterly calculations, rather than the decline in the amount of digital assets held by our clients. On a normalized basis, assets on platform increased slightly from $59.6 billion in Q2 to $59.9 billion sequentially, and normalized assets staked... ...increased from $10.4 billion to $10.5 billion. Beyond the strength of the assets on our platform, we also successfully expanded our global footprint by capitalizing on transparency, speed, and compliance benefits that come with being a publicly traded company and a federally... Chartered National Trust Bank, Bitco Bank & Trust National Association. This included opening a larger Singapore office to satisfy the increased appetite for digital asset prime services amongst the family offices and ultra-high net worth individuals, and successfully launching Bitco Korea as the first new Korean entity established by a global...

digital asset company by securing our vast license to provide custody and transfer services for local institutional and enterprise clients across finance and technology. While we have strengthened our operating model, we have continued investing in the capabilities that make our... platform more valuable to clients. Everything we built in this quarter runs through a single idea. A client should be able to reach liquidity everywhere without moving assets off our platform. That is made possible by our proprietary Go network and three things further advanced it during the quarter. In July, we launched our global liquidity layer, Tobacco Prime. Providing clients access to exchanges market makers and OTC counterparties through a single platform. We also expanded our liquidity network in the with the addition of Virtu Financial, a leading global market maker. In September, our relationship with crossover market. A digital asset trading technology firm surpassed $2 billion in cumulative notional volume. That volume was executed on their electronic communication network, CrossX, and all of it was settled through the GO network, which allows for digital asset movement in and out of cold storage. We also extended access to on-chain trading through integrations with Hyperliquid and Decibel. Eligible clients today can connect to these venues through their existing BitGo self-custody wallets while retaining established controls over wallet access and fund transfers. And finally, to close out the quarter, we completed our

off-exchange settlement integration with OKEx to expand to international markets, building on our existing U.S. relationship established back in April. This allows eligible institutions around the globe to access OKEx's trading liquidity while keeping their digital assets stored. rather than moving them onto the exchange. The common thread with all of our services is the custody layer. Because the assets stay with us, we have the flexibility to address more unique requests from eligible institutional clients, such as locking tokens and building structures with calls and puts against them, and to also then use those positions as collateral for financing. None of that functionality exists as a standalone application. It required regulated infrastructure, secure custody, and an interoperable platform that brings those capabilities together, and lasting partnerships and integrations to activate this ecosystem. Security and asset protection have always been at the core of BICO's business since our founding in 2013. We believe our reputation and track record for security is one of the primary reasons institutions choose BICO. For more than a decade, we have continuously invested in building one of the industry's most secure custody platforms combined. Regulated, qualified custody with geographically distributed key management, multi-signature technology, and rigorous operational controls.

That's why we continue to be a household name among the largest institutions and are now live with 33 different U.S. crypto ETFs with more. They're currently onboarding. Recent security incidents across the industry reinforce why this matters. Only in crypto markets are institutions required to hold assets at individual exchanges to access their trading products and liquidity, exposing those assets to exchange counterparty risk. BitGo's Go network offers a differentiated approach. Institutions can manage their assets and regulated custody at BitGo while accessing the expanding network of trading venues, products, and liquidity. As we add more exchanges and integrations, clients gain greater trading flexibility and settlement capabilities without having to distribute their assets. across multiple exchange counterparties. We believe this combination of institutional-grade security, regulated custody, and broader market access should represent the industry standard for digital asset market infrastructure. Even though the Clarity Act was not enacted, BitGo is actively building the market structure. that institutions demand now. Today's digital asset exchanges were built initially for retail. As institutions have entered the market, they've been perplexed as neither the operating capabilities, the regulatory standing, or the market structure provided by those early exchanges met the rigorous standards of traditional financial institutions.

One of those standards is the separation of duties. In traditional finance, trading venues never custody your assets. Execution, custody, and clearing sit with separate institutions. That separation is deliberate because it means no single point of failure can take your assets down with it. This failure to segregate... Duties were one of the primary causes of historical failures at Mt. Gox, QuadrigaCX, Coincheck, and FTX. In each case, these failures of the exchange not only affected the market, but customer assets were lost. That's the challenge that BitGo's GO Network solves with our OV Exchange Settlement product. OES lets you allocate assets for trading on an exchange. while keeping your funds safe in Bicco, a regulated fiduciary and national trust bank. Let me demonstrate while using an account at OKEx, a leading global crypto exchange that recently announced a major partnership with the New York Stock Exchange. With Bicco OES, the client instead leads to Bitcoin. Bicco's regulated custody and virtually allocates a portion of their assets onto the exchange. My OKEx account is connected to my Go account, which is enabled for OES, and now appears next to my custody holdings. Nothing is moved. Now I'll allocate from my custody holdings. into my OKEx account. Watch the OKEx balance.

There it is. Instantly. That was a ledger movement on the Go network with no blockchain transaction and no waiting. My assets are still in Bitco custody in my name. What changed is that my OKEx account now has a balance that I can trade with, backed by the... those assets. The exchange then recognizes the client's balance from Bitco and allows the client to trade against it. From the trader's perspective, it's a normal deposit on the exchange, and that's by design. I can now trade directly on the exchange, and Bitco isn't in the order or execution path. I can now trade however I want and run whatever strategies I want. Nothing about how I trade changes. I was able to connect to an exchange account, allocate assets instantly, while keeping them in custody and trade against them, with settlement running automatically in the background. This is what industry maturation looks like. This is what... institutions demand. Institutions aren't lowering their standards just to enter crypto. Crypto's infrastructure is rising to meet their needs. OES, powered by the GO network, gives them that separation of execution and custody that they're used to, now with the venues and liquidity of digital assets. Changing gears... In August, we acquired NYDIG's institutional trading business, which marks an important step in broadening BitGo's financial services offering. NYDIG was founded in 2017 and established itself as the industry's premier steward for institutional Bitcoin mandates.

We've completed the acquisition on August 27th and have since launched BitGo Global Markets, adding expertise in derivatives, structured products, and financing, along with established institutional client relationships. These capabilities complement our existing platform, expanding the range of financial services we can offer institutional clients, and creating additional opportunities. to deepen those relationships over time. Today, BitGo supports nearly a hundred different protocols and over 2,800 tokens, which significantly expands NYDAX product offerings. The team is also central to this opportunity. Pete Janney spent 15 years at Credit Suisse, running equity derivatives businesses, and is now the head of BitGo Global Markets. He leads an established team of trading, technology, and operations professionals who joined BitGo through the acquisition. For BitGo's existing clients, NYDAX offerings introduced additional yield generation opportunities, coupled with hedging and financing solutions. All supported by a well-experienced team in structuring solutions around institutional needs. We expect to improve operating efficiency as we integrate the business and leverage our existing technology, operations, and compliance infrastructure. I'll hand the call over to Chen Feng, our Chief Revenue Officer, to discuss...

...our tokenized equities commercial priorities and how we intend to bring those capabilities to clients.

Thank you, Mike.

Tokenized equities are an important commercial priority for BitGo. The opportunity extends beyond... ...presenting shares on a blockchain. Institutions need infrastructure to securely hold those assets, transfer, and settle them. That is the vision behind Goldstocks, the platform we are developing to bring traditional equities on-chain. Our ambition is to connect... ...additional asset ownership with the flexibility of on-chain markets, supported by BitGo's custody and financial infrastructure. We have already demonstrated elements of that infrastructure. In February, BitGo and Vigor completed the... ...first blockchain-native equity trades on Figor's alternative trading system. In July, during the limited production event for DTCC's tokenization service, BitGo Bank & Trust, an OCC-regulated full-service qualified custodian, integrated with the service. Supported the custody, delivery, and settlement of tokenized U.S. Treasury collateral in live repo and reverse repo workflows. That work showed how institutions can securely hold and mobilize tokenized treasuries as collateral. within a regulated framework. When DTCC launched the service into production late October, BitGo was among the custody providers supporting it. And just a few weeks ago, bullish successfully demonstrated a transfer of 61 million reserve bullish shares being issued. In its equity acquisition on Solana at the New York Stock Exchange using BitGo's wallet infrastructure. On our Q2 earnings call, we also demonstrated our Go Stocks product. The demo showed how tokenized equity positions could be held in regulated custody.

and used as collateral for borrowing. We see two significant opportunities. The first is broadening international access to U.S. equities and, over time, other traditional investments. Today, access is often constrained. by brokerage availability, local market infrastructure, and the complexity of moving funds across borders. Significant capital is already held in stablecoins and digital asset wallets globally. Through GoStox, we aim, over time, subject to regulatory approval. Approvals to make tokenized equities accessible through the digital asset channels investors already use. That would reduce barriers and let a broader base of investors worldwide gain exposure to U.S. equities. The second is expanding the utility of existing. Go stocks will initially be held in qualified custody at BitGo Bank and Trust. Holding equity positions on chain in regulated custody can make them easier to settle and to use as collateral, starting with financing through BitGo. Over time and subject to regulatory approvals, we expect. We expect to extend transferability so holdings can move across connected financial applications. That would give investors greater flexibility in how they manage and use their holdings. Equities are an initial focus. Over time, we believe the same infrastructure can support a broader range of traditional assets on-chain. For BitGo, this creates an opportunity to expand the assets our platform serves, reach new clients globally, and deepen our role in their financial activities as traditional and digital asset markets converge. Building on the expanded capabilities of BitGo,

global markets, we are excited to announce that the WisdomTree tokenized treasury money market digital fund is now integrated in our BitGo Mint platform. This integration enables institutional clients to seamlessly convert idle cash. into yield generating assets, which can then serve as collateral for the advanced trading and financial solutions available through global markets. Together, these offerings mark a key milestone in delivering a unified capital efficient ecosystem, allowing clients to manage custody. capture yield and execute sophisticated strategies within a single regulated environment. We are actively pursuing commercial partnerships and distribution opportunities to bring gold stocks to market and we look forward to sharing. updates as these efforts progress. With that, I'll turn the call over to Ali to review our financial results.

Thank you, Chen.

Your first question comes from the line of Kathy Chan with Wells Fargo. Please go ahead.

Your next question comes from the line of Chris Brendel.

Your next question comes.

Hi.

Thanks for taking my question.

One quick housekeeping one. For the NYDIG acquisition, would most of that business be reflected in the trading segment? Or are there other segments that also flows through? Can I take this one? I think most of it would be in the digital asset sales. So NYDIG, I think as we combine, capitalize on their expertise in institutional clients, they're... relationships. Most of it would be in digital asset sales. Now, they do manage certain funds, although that's a very small stream of revenue, that piece will be in the subscriptions and services, but primarily in the digital asset sales. Great. And I apologize. If I missed this, but we saw that the DTCC launched their tokenization full launch, I think it was a couple of days ago, and there's some participation by some larger traditional investment banks. Anything that... I know it's too early, but any scene you're seeing in regards to adoption or the pipeline in terms of companies that look like they're going to be onboarding this, thanks. Let's see, a couple of notes. You're probably aware. I think to this day, BITGO is still the only qualified custodian on the Canton network. We've enjoyed the relationship with DTCC. Several of their clients are on BITGO. We were part of their demo all the way back through the summer as they were getting going. Overall, on this part of the sector, there's probably about a dozen different variants of tokenized stocks that are all coming online, each with their own angle. The DTCC's variant is just one of them. BITGO's supporting all of these. So we've been working with Figure since then.

They launched last February. We're working with DTCC. As Bullish comes online with their digital transfer agent through Quinity Completing, we look forward to be working with them. We've got our GoStocks initiative. We work with the Robinhood components. So we'll hit all of the- I think this is a period of innovation. And when you see innovation, you're going to see a lot of scrambling as different products come to market with slightly different variants. And, you know, the market sorts this out over the next couple of years. Also, you know, we've got the OKX ICE. Coming online, I guess, right about now as well. So we'll be in all of these. And it's probably going to take a little bit of time. But overall, this is going to be nothing but good for BitGo's business. Great. Thanks.

Your next question.

Thank you. There was a discussion on your focusing on higher margin activities. I'm curious. Since you're more of a taker than a maker in terms of the way the things that clients are doing from a use of your different products and services, is that not a fair take? I wouldn't necessarily characterize it that way, but go on.

Well, so the point is, how do you focus on the higher margin activities, or how do you drive clients towards the higher margin offerings? Look, I think the acquisition of IDAG is a good example. When you're getting up to the upper echelon of sophisticated traders, they are looking for not just how do they get the best price, but how do they make sure they're doing it at the risk level for which they're comfortable. Remember, these people are fiduciaries to their shareholders, they're fiduciaries to their investors, they care very well. very much about what risks exist within all of their counterparties. So, NYDIG did an exemplary job of this prior to us coming together and then we're bringing that into BICCO. as well. So, we think this helps us continue to hit kind of those folks that are really worried about how risk works. That will, of course, lead to higher margin products.

Seeing the Binance hack, which was obviously... Pretty significant. It would almost seem like an advertisement for the reason to have a self-custody and really an advertisement for what BitGo does. I'm curious if you've seen any velocity of movement since that. We haven't been able to announce them yet, but I suspect there will be significant announcements in the coming months for this. Look, to all the investors at Binance, to Binance as well, it's sad to see an event like this. Some sympathy to everybody that had to be scared. Congratulations to Binance, by the way, for getting through this and, you know, stepping up to cover their clients. But yeah, I think all of this is part of a call for market structure. We've been talking about this for well over a year. And a half, I guess, actually longer than that. But also on the self custody side, there's been some chinks in the armor on that front as people realize that some of the things that, you know, BitGo built for institutions, you know, 10 plus years ago, in other words, no single point of failure, having multiple keys, using MPC, things like that. These are suddenly becoming front and center as, you know, hacks and failures have taken more, more cycles in the press. So we think like this is just part of the natural evolution. If you had asked me 10 years ago, I probably would have said it would have happened a lot faster than it has had. I think we've known these errors and these vulnerabilities. BitGo's been defending against them obviously for quite some time and we think the rest of the industry is catching up.

Thank you.

Your next question comes from the line of James Yarrow with Goldman Sachs. Please go ahead.

Your next question comes from the line of Dan Dolev with Mizuho. Please go ahead.

Your next question comes from the line of Joseph Vaz...

Your next question comes from the line of Nathan Frankowitz with Cantor Fitzgerald. Please go ahead.

Thank you for your participation and you may now disconnect.