BitGo has cut nearly 15% of its workforce as the crypto infrastructure firm shifts its attention toward artificial intelligence, stablecoins, and higher margin institutional services.
Key Takeaways
- BitGo is reducing its workforce by nearly 15%, affecting an estimated 85 to 90 employees.
- The company plans to focus on security, trading, stablecoins, settlement, and AI powered infrastructure.
- Shares have fallen about 73% since BitGo’s January 2026 public debut.
- The layoffs come as crypto and tech firms increasingly turn to AI to improve efficiency and cut costs.
What Happened?
Crypto infrastructure company BitGo announced on Thursday that it is laying off nearly 15% of its staff as part of a strategic overhaul aimed at sharpening its focus on key growth areas. Chief Executive Officer and co-founder Mike Belshe described the move as a one time action and said the company does not expect additional workforce reductions.
The decision places BitGo among a growing list of crypto companies that have cut jobs this year while reshaping their businesses around artificial intelligence and more profitable product lines.
BitGo Refocuses on Higher Margin Businesses
In a post on X, Belshe said the digital asset industry has changed significantly and that financial services companies must evolve with it.
Today I’m sharing a hard decision: we are reducing our workforce by nearly 15%.
— Mike Belshe (@mikebelshe) June 25, 2026
I want to be straight with you about why. The ecosystem has evolved, and the way we build financial services has changed dramatically. To keep winning for our clients, we need to be sharper, more…
BitGo had 603 full time employees as of December 31, 2025, according to its annual report published in March. The reduction suggests that roughly 90 positions could be affected, although the company has not disclosed the exact number.
Despite the layoffs, BitGo is continuing to hire. The company’s job board still lists 51 open positions across engineering, compliance, security, sales, and other departments in the United States, Canada, India, Singapore, Dubai, Brazil, and the United Kingdom.
Pressure Mounts After Public Listing
BitGo became one of the most closely watched crypto listings of the year when it went public on the New York Stock Exchange in January 2026. The company raised $212.8 million at $18 per share, giving it a fully diluted valuation of more than $2 billion.
However, the stock has struggled since its debut. Shares closed Thursday at $4.80, down more than 4.5% on the day and nearly 73% below the initial public offering price.
The market performance has intensified pressure on management to improve profitability and focus on business lines that can deliver stronger returns.
Strong Revenue Growth but Profit Challenges Remain
BitGo has reported rapid revenue expansion in recent quarters. The company generated $3.8 billion in first quarter 2026 revenue, representing growth of more than 112% year over year. Earlier financial filings also showed $16.2 billion in revenue during 2025.
Despite the growth, profitability has remained elusive. The company posted a widening net loss, with much of its revenue coming from lower margin digital asset sales.
BitGo has been building new businesses that could improve margins over time. The company secured a federal trust bank charter from the Office of the Comptroller of the Currency in December and launched a stablecoin minting platform in April to capture growing demand in the stablecoin market.
Crypto Industry Layoffs Continue
BitGo’s workforce reduction reflects a broader trend across the crypto and technology sectors.
More than 5,000 crypto jobs have been eliminated in 2026 as companies seek efficiencies through AI and respond to challenging market conditions. Coinbase cut around 700 employees in May, Kraken reduced its workforce by 150 staff, Dune cut 25% of its employees, and Robinhood announced a 10% workforce reduction in June. Earlier this year, Gemini and Crypto.com also announced layoffs while citing increasing adoption of artificial intelligence.
According to Layoffs.fyi, the wider US technology sector has recorded more than 121,500 job cuts across over 200 companies this year.
CoinLaw’s Takeaway
In my experience, layoffs in crypto are no longer just about surviving market downturns. They are increasingly about redirecting resources toward artificial intelligence and higher margin products. BitGo’s decision suggests that management sees stablecoins and AI infrastructure as the next major growth engines for institutional crypto services.
I found it particularly notable that the company is still hiring in several markets even while cutting staff. That signals a restructuring of priorities rather than a retreat. The real test for BitGo will be whether this leaner strategy can finally turn impressive revenue growth into sustainable profits.
