BitGo Slashes Workforce Amid Shift to AI-Powered Infrastructure

BitGo has cut its workforce by 15% in an effort to double down on AI-powered infrastructure and core crypto services. The move comes despite a 112.6% increase in first-quarter revenue, but net losses widened due to non-cash Bitcoin treasury losses and IPO-related costs.

The layoffs follow BitGo's recent financial results, which saw the company report $3.8 billion in revenue for Q1. However, net losses increased to $60.7 million from $25.7 million last year, primarily due to mark-to-market losses on its Bitcoin holdings and higher stock-based compensation.

BitGo's CEO Mike Belshe stated that the company needs to prioritize resources on security, trading, stablecoins, settlement, and AI-powered infrastructure to stay competitive in the digital asset industry.