BitGo, the cryptocurrency custody and infrastructure company, is cutting nearly 15% of its workforce to shift resources toward stablecoins, AI-powered systems, and settlement infrastructure, CEO Mike Belshe announced this week. The reduction affects approximately 90 staff members from a headcount of 603 as of December 31, 2025, according to the company's annual report. Belshe called it "a one-time action" and said BitGo does not expect further reductions.
The timing is stark. BitGo went public on the NYSE in January 2026 at $18 per share, raising $212.8 million at a fully diluted valuation above $2 billion. Shares closed Thursday at $4.80, down more than 4.5% on the day. The stock is now roughly 73% below its IPO price, placing it among the hardest-hit crypto listings of the past year.
What makes the layoff announcement peculiar is BitGo's recent financial performance. The company reported $3.8 billion in Q1 2026 revenue, up 112.6% year-over-year. Yet it posted a widening net loss for the quarter, suggesting that scale is not yet translating to profitability. The disconnect between rapid revenue growth and falling stock price typically points to investor skepticism about the unit economics beneath that top-line number.
Despite the workforce reduction, BitGo is actively hiring. The company lists 51 open roles across engineering, compliance, security, and sales in the U.S., Canada, India, Singapore, Dubai, Brazil, and the U.K. That hiring pattern suggests the layoffs are targeted at specific functions rather than a broad retrenchment, though the company has not disclosed which departments are shrinking.
The move aligns with a broader industry pattern. Crypto companies have shed more than 5,000 jobs in 2026 alone. Coinbase cut 14% of staff in May. Dune trimmed 25% of headcount. Robinhood and Kraken each shed 10% and 150 staff, respectively, citing AI-driven efficiency gains and market pressure. BitGo's pivot toward AI infrastructure mirrors language others in the sector are using to justify personnel cuts, though whether those efficiency gains will materialize remains to be seen.