BitGo Cuts 15% of Staff to Refocus on Stablecoins and AI
BitGo Cuts 15% of Workforce – Public Custodian Refocuses on Stablecoins, AI and Institutional Services
Key Takeaways
- BitGo is reducing its workforce by nearly 15%, affecting roughly 85 employees based on prior headcount disclosures.
- CEO Mike Belshe described the layoffs as a one time action with no further reductions planned.
- The company is narrowing its focus to security, trading, stablecoins, settlement and AI powered infrastructure.
- BitGo reported $16.2 billion in revenue for 2025, but most came from low margin digital asset sales and it posted a $14.8 million net loss.
Workforce Reduction Follows Public Listing
BitGo is cutting nearly 15% of its workforce as it restructures operations several months after its public market debut. The digital asset custodian disclosed in its prospectus that it employed about 565 full time staff as of mid 2025. A reduction of nearly 15% translates to roughly 85 positions.
Chief executive officer Mike Belshe characterized the move as a one time action and stated that no further cuts are planned. The restructuring comes after BitGo priced its shares at $18 in January, becoming the first major crypto company to go public in 2026.
As a listed company, BitGo now operates under increased scrutiny from public shareholders. The workforce reduction signals a shift in priorities as the company aligns its cost structure and operational focus with its stated long term strategy.
Shift Toward Stablecoins and AI Driven Infrastructure
According to Belshe, BitGo intends to concentrate resources on higher value institutional crypto services. The company is narrowing its focus to core areas including security, trading, stablecoins, settlement and AI powered financial infrastructure.
In April, BitGo launched a minting tool aimed at the stablecoin sector. The company identifies stablecoins as a higher margin business line compared to digital asset sales. This product initiative aligns with its stated goal of improving profitability by emphasizing services that generate stronger margins.
BitGo also received a federal trust bank charter from the Office of the Comptroller of the Currency in December. This regulatory milestone positions the company within a federally supervised framework and supports its institutional custody and settlement ambitions.
Belshe said the restructuring is designed to sharpen the company’s operational focus and concentrate personnel and resources on areas considered most relevant to clients. The savings from the workforce reduction are intended to support further investment in AI powered infrastructure.
Financial Results Highlight Margin Pressure
BitGo’s 2025 financial results provide context for the restructuring. The company reported $16.2 billion in revenue, representing more than fourfold growth. However, most of that revenue stemmed from low margin digital asset sales.
Despite the revenue increase, adjusted EBITDA reached $32.4 million. A decline in the value of its Bitcoin treasury contributed to a $14.8 million net loss for the year.
These figures illustrate the gap between top line growth and bottom line profitability. While revenue expanded significantly, margin pressure and treasury volatility weighed on overall earnings. The shift toward stablecoins and institutional services reflects an effort to rebalance revenue streams toward segments described as higher margin.
Part of a Broader Wave of Crypto Sector Layoffs
BitGo’s decision follows similar workforce reductions across the crypto industry in 2026. In May, Coinbase reduced its headcount by about 700 employees, or approximately 14% of its workforce, according to a securities filing. That restructuring was described as an effort to optimize operations for what the company called the AI era.
The parallel timing underscores how digital asset firms are reassessing cost structures and reallocating capital toward automation and AI driven processes. BitGo is positioning its own restructuring within that broader industry trend.
Not all observers attribute the move solely to strategic realignment. Thomas Braziel, founder of distressed crypto firm 117 Partners, linked the layoffs to the cost structure of BitGo’s Bitcoin custody operations in a public post. However, the company itself has framed the cuts primarily as a means to improve focus and efficiency.
Implications for Institutional and Crypto Market Participants
For institutional clients and market participants, BitGo’s restructuring centers on its core custody, settlement and stablecoin services. The company’s federal trust bank charter and emphasis on institutional infrastructure suggest continuity in regulated custody operations despite the reduction in staff.
For users evaluating service providers, the financial data indicate that scale alone has not translated into proportional profitability. The company’s strategic pivot highlights how revenue composition and margin profile influence operational decisions in the digital asset sector.
As BitGo prepares future earnings reports as a publicly listed company, its ability to convert revenue growth into sustained profitability will be measurable through its financial disclosures.
Our Assessment
BitGo is reducing its workforce by nearly 15% as part of a one time restructuring following its January public listing. Despite reporting $16.2 billion in revenue for 2025, margin pressure from low margin digital asset sales and a $14.8 million net loss have prompted a sharper focus on stablecoins, institutional services and AI powered infrastructure. The move aligns with a broader pattern of crypto companies adjusting cost structures in 2026 while prioritizing higher margin and technology driven business lines.
