Crypto platforms Bullish and BitGo report losses amid digital asset volatility

Cryptocurrency platforms Bullish and BitGo reported mixed financial results for the second quarter, with both companies facing net losses driven by the declining value of digital assets.

Bullish reported a net loss of $280 million, a significant increase from $108.3 million in the same period last year. This loss was largely attributed to a $244.6 million impairment charge on its Bitcoin holdings due to price fluctuations. Despite this, the company saw record subscription and service revenue of $62.7 million, contributing to an adjusted EBITDA increase to $29.5 million and a shift to an adjusted net profit of $14.3 million.

BitGo experienced nearly 80 percent revenue growth to $4.3 billion, yet reported a net loss of $19 million. The company recorded an unrealized loss of $18.8 million on its digital assets, a sharp reversal from an unrealized gain of $55.8 million a year prior. CEO Mike Belshe noted that while revenue grew, profitability was pressured by lower margins and smaller spreads on certain spot market transactions.