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BitGo CFO Edward Reginelli to resign effective Sept. 15
BitGo reported a $19.0 million Q2 net loss, despite 79.6% revenue growth to $4.33 billion, as trading and staking margins fell.
BitGo said its Chief Financial Officer, Edward Reginelli, will resign effective Sept. 15, following notice to the board on Aug. 10, and the company will begin a formal search for a successor. BitGo added that the resignation is not tied to a disagreement with its operations, policies, or practices, and that Reginelli is expected to remain in an advisory role after his departure, according to the company’s 8-K.
In the same disclosure, BitGo reported a $19.0 million second-quarter net loss, reversing a $38.3 million profit a year earlier, even as revenue climbed 79.6% to $4.33 billion. The loss narrowed from $60.7 million in the first quarter, but adjusted EBITDA swung to a $4.2 million loss from a $3.0 million gain a year earlier, and deteriorated from a $1.7 million loss in the prior quarter.
BitGo said most revenue passes through as direct trading costs, leaving a quarterly margin of about $7.1 million, after unit margin fell to 17 basis points from 32 basis points in the first quarter. The company attributed the decline to lower spreads on some spot trades and a smaller mix of derivatives activity, noting that spot trading revenue is recognized on a gross basis while derivatives revenue is recognized on a net basis, which can affect reported Digital Asset Sales revenue and margin.
On other lines, staking revenue rose 30.9% quarter over quarter to $64.7 million but fell 28.8% year over year, and its staking take rate dropped to 6.0% from 16.1% in the first quarter and 10.0% a year ago. Stablecoin-as-a-Service revenue rose 148.0% year over year to $38.8 million, while the company’s June workforce reduction and other operating model changes are expected to drive about $15 million in annualized cash savings, after a $1.3 million restructuring charge in the quarter.