BitGo Posts $19M Q2 Loss Despite 80% Revenue Surge; Shares Slip 1.8% Overnight
BTGO is trading near its 52-week low of $4.665 (7.0% above the low).
Summary
BitGo swung to a $19 million net loss in Q2 despite revenue jumping 80% year-over-year to $4.33 billion. The loss narrowed from $60.7 million in Q1, but the year-over-year swing was driven by an $18.8 million unrealized loss on digital assets versus a $55.8 million gain a year earlier. CEO Mike Belshe said on the earnings call that performance fell short of expectations, citing lower margins from reduced spot spreads and a smaller derivatives contribution. The company expects $15 million in annualized cash savings from its June workforce reduction and sees expenses declining in Q3. Shares fell 1.8% in overnight trading to $4.90 after closing up 0.6% at $4.99. This follows the 8-K and 10-Q filed yesterday, which also revealed unremediated material weaknesses and a securities class action.
At the time of this announcement, BTGO was trading at $4.99 on NYSE in the Crypto Assets sector, with a market capitalization of approximately $578.6M. The 52-week trading range was $4.67 to $24.50. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Cointelegraph.