BitGo, a major crypto custodian and infrastructure firm, announced a 15% staff reduction to refocus on AI infrastructure and stablecoins. CEO Mike Belshe explained in a post on X that the layoff responds to ecosystem evolution and the need to concentrate resources on security, trading, stablecoins, settlement, and AI-powered infrastructure. The decision follows BitGo's Q1 results last month showing revenue surged 112.6% year-on-year to $3.8 billion amid its January IPO, though net losses widened to $60.7 million from $25.7 million a year earlier.
Belshe wrote in the X post that "the ecosystem has evolved, and the way we build financial services has changed dramatically." He added that the company does not currently anticipate further headcount reductions. The Block reached out to BitGo for further information on the layoff and future plans.
BitGo Reports Q1 Revenue Growth Amid Widening Losses
According to a company announcement last month, BitGo's Q1 revenue surged 112.6% year-on-year to $3.8 billion, amid its initial public offering in January. Net losses widened to $60.7 million from $25.7 million a year earlier, driven by non-cash mark-to-market hits on its bitcoin treasury and elevated IPO-related stock compensation.
CEO Belshe said at the time that BitGo would continue to invest in scaling its core infrastructure and emerging areas such as stablecoins and tokenized assets.
Crypto Firms Cut Staff to Pivot Toward AI
Several digital asset firms have recently reduced headcount to pivot toward AI. Last month, Coinbase announced a 14% layoff to shift toward AI-native operations. In the same month, crypto data firm Dune cut a quarter of its staff as it further integrated AI into the company. Jack Dorsey's Block made similar cuts earlier this year.
BitGo Stock Falls 4.76% Following Announcement
BitGo's stock BTGO fell 4.76% on the New York Stock Exchange to close at $4.80 on Thursday.
FAQ
What did BitGo announce about its workforce?
BitGo announced a 15% staff reduction. CEO Mike Belshe stated in an X post that the company needed to adapt to the evolving ecosystem and concentrate resources on security, trading, stablecoins, settlement, and AI-powered infrastructure. Belshe added that BitGo does not currently anticipate further headcount reductions.
How did BitGo perform financially in Q1?
According to a company announcement last month, BitGo's Q1 revenue surged 112.6% year-on-year to $3.8 billion amid its January IPO. However, net losses widened to $60.7 million from $25.7 million a year earlier, driven by non-cash mark-to-market hits on its bitcoin treasury and elevated IPO-related stock compensation.
Which other crypto firms have recently cut staff?
Last month, Coinbase announced a 14% layoff to shift toward AI-native operations, and crypto data firm Dune cut a quarter of its staff as it integrated AI into the company. Jack Dorsey's Block made similar cuts earlier this year.
