BitGo Posts Doubled Revenue, Stock Still Slides 8%

BTGO reported Q2 2026 earnings on May 13 — and the numbers looked impressive on paper. Revenue more than doubled year-over-year to $3.77 billion. Yet the stock fell 8.3% the next day to close at $11.89. That divergence between the headline beat and the price reaction is the central tension of this week's setup.

The earnings reaction is historically volatile for BitGo. A March print delivered a 14.7% one-day gain. The quarter before that produced a 22.6% loss on the day, followed by another 14.2% slide over the next five days. The magnitude of swings has been wide enough that even a strong top-line print carries real two-sided risk — and this week showed that revenue growth alone isn't sufficient to hold the price above the open.

The borrow market tells a nuanced story about where professional positioning has moved. Short interest is 3.5% of the free float — elevated enough to be meaningful, but not extreme. What matters more is the trend: short positions have declined roughly 23% over the past month, falling from a peak near 3.1 million shares in early April to around 2.3 million now. That covers a period when availability was at its tightest — the lending pool ran at fully used (100% utilization) for most of April, with cost to borrow peaking above 7% in early April. Both metrics have since eased materially. Cost to borrow is now near 4.76%, down roughly 19% on the month, and availability has loosened. The ORTEX short score of 58.6 — steady over the past week — points to a moderately elevated but not acute short setup. Post-earnings, the question is whether the day's 8% selloff prompts a fresh round of short-building or whether the covering trend resumes.

Options positioning looks distinctly call-heavy, and has throughout the week. The put/call ratio is 0.30, below its 20-day average of 0.32 — call demand has been running consistently above put demand, and the z-score of -0.5 confirms this is a modest but persistent lean toward upside exposure. The 52-week range runs from 0.0 to 0.89; at 0.30, options flow isn't signalling any post-earnings panic, even after the price dropped. That's a notable contrast to the price reaction.

The Street remains mostly constructive, but has been trimming targets since the March selloff. Mizuho lowered its target from $17 to $14 in early April while keeping its Outperform rating. Goldman Sachs, which initiated at Neutral in February with an $11.50 target, raised that to $10.50 after the Q1 earnings miss in late March — a Neutral that has aged into something close to a hold-the-line call. The consensus target across the covering analysts sits near $14.67, roughly 23% above the current price. The majority of ratings remain Buy or Outperform, though target cuts have been the dominant move since initiation. EV/EBITDA is near 25x and compressing — down roughly 2.6x over 30 days — while the P/E has also pulled in as the stock has lagged. The bull case centres on $104 billion in assets under custody, a MiCA-licensed European operation now serving as custodian for Nordic ETPs, and the Go Network off-exchange settlement expansion. The bear case is sharper: dependence on crypto price levels to support treasury and fee income, margin pressure from rising competition, and the reality that this is still a pre-profitability business burning through EPS at $(0.62) per share — improved from $(0.69) a year ago, but still loss-making.

Insider activity has been uniformly in one direction. In January, the CFO, COO, Chief Compliance Officer and an unnamed executive director sold a combined $7.4 million in stock at $16.74 — near what was then the post-IPO high. CEO Michael Belshe sold another $220k at $9.82 in late March after the price fell sharply. No insider buying appears anywhere in the recent record. Belshe did add to his holdings via an 858,000-share filing in March, but that appears linked to award vesting rather than open-market purchases. The ownership base remains concentrated: Valor Management, Redpoint, and Craft Ventures together control roughly 26% of shares, with Belshe personally holding 8.4%. Large passive names — Vanguard, BlackRock, Geode — have recently initiated small positions, likely index-driven rather than active convictions.

The next print is now behind the company. What traders will watch is whether the post-earnings availability reading tightens again — any fresh demand for borrows following the price drop would signal that shorts are rebuilding — and whether the MiCA-licensed European custody business generates enough new partner announcements to shift the narrative from crypto-treasury dependent to fee-diversified infrastructure.