BitGo cuts 15% of staff to refocus on AI infrastructure and stablecoins

Major crypto custodian and infrastructure firm BitGo announced that it has cut its staff by 15%, citing changes in the ecosystem.

In a post on social media platform X, BitGo CEO Mike Belshe announced the layoff, explaining that the company needed to adapt to the evolving ecosystem.

"The ecosystem has evolved, and the way we build financial services has changed dramatically," Belshe wrote. "To keep winning for our clients, we need to be sharper, more focused, and concentrate our people and energy on the areas that matter most: security, trading, stablecoins, settlement, and AI-powered infrastructure."

Belshe added that the company currently does not anticipate further headcount reductions. The Block has reached out to BitGo for further information on the layoff and future plans.

AI-driven layoffs

The layoffs come after BitGo reported widening first-quarter net losses despite strong revenue growth.

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. 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.

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.

Meanwhile, several other 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's stock BTGO fell 4.76% on the New York Stock Exchange to close at $4.80 on Thursday.