BitGo cuts 90 jobs and pivots to stablecoins and AI infrastructure months after IPO

BitGo, the crypto custody and infrastructure firm that went public in January at $18 per share, is cutting nearly 15% of its workforce, approximately 90 positions, as it redirects investment toward stablecoins, AI-powered infrastructure, and settlement services.

The announcement was made by BitGo co-founder and Chief Executive Officer Mike Belshe in a public statement shared on X and filed with the U.S. Securities and Exchange Commission (SEC). The decision comes just months after the company went public and amid an industry-wide Crypto AI layoff wave that has affected several leading crypto and technology firms throughout 2026.

Although BitGo did not disclose the exact number of employees affected, the company’s 2025 annual report listed 603 full-time staff members, suggesting that roughly 90 positions could be eliminated.

Crypto AI layoff drives BitGo’s strategic restructuring

Explaining the company’s decision, Belshe described the workforce reduction as a necessary adjustment to changing industry conditions rather than a sign of long-term contraction.

“Today I’m sharing a hard decision: we are reducing our workforce by nearly 15%.” — Mike Belshe, Co-founder and CEO, BitGo.

Belshe said the restructuring reflects significant changes in how financial services are being built across the digital asset industry.

“The ecosystem has evolved, and the way we build financial services has changed dramatically.” — Mike Belshe, Co-founder and CEO, BitGo.

According to Belshe, BitGo will now concentrate its investments on “security, trading, stablecoins, settlement, and AI-powered infrastructure,” positioning the company to compete more effectively as artificial intelligence becomes increasingly integrated into financial technology.

Despite the Crypto AI layoff, Belshe emphasized that the reduction represents “a one-time action” and said the company does not expect additional workforce cuts. He also noted that BitGo continues to recruit for dozens of open positions, indicating that hiring will continue in priority business areas even as overall staffing declines.

BitGo’s public market performance after Crypto AI layoff

The Crypto AI layoff announcement arrives only months after BitGo completed its initial public offering.

In January, the company priced its IPO at $18 per share, raising approximately $213 million and achieving a valuation exceeding $2 billion. Financially, BitGo reported strong top-line growth during the first quarter, with revenue increasing 112.6% year-over-year to $3.8 billion. However, the company also recorded wider net losses during the same period.

Investors reacted cautiously to Thursday’s announcement.

Shares of BitGo, trading under the ticker BTGO, fell nearly 5% during Thursday’s session to close at $4.80, according to Yahoo Finance. The closing price leaves the stock trading approximately 73% below its IPO price, highlighting the challenges facing recently listed crypto companies despite continued revenue growth.

While the Crypto AI layoff announcement coincided with the market decline, the company’s stock has faced sustained pressure since its public debut amid broader weakness across digital asset-related equities.

Crypto AI layoff wave spreads across crypto industry

BitGo is the latest company to join a growing list of cryptocurrency firms reducing headcount in 2026 as businesses increasingly cite automation, artificial intelligence, and changing market conditions as reasons for restructuring.

Earlier this year, Block, founded by Jack Dorsey, eliminated approximately 4,000 positions around 40% of its workforce.

In explaining the decision, the company pointed to an “increased reliance on automation, proactive intelligence capabilities and AI tools.”

Meanwhile, Coinbase reduced its workforce by 14% in May, while crypto analytics platform Dune cut roughly one-quarter of its employees. Robinhood followed with a 10% workforce reduction a month later as crypto-related revenue weakened.

The widening Crypto AI layoff pattern extends beyond the cryptocurrency sector. Across the broader technology industry, more than 120,000 jobs have reportedly been eliminated since the beginning of 2026. Major technology firms including Microsoft and PayPal have also identified artificial intelligence as a significant factor behind restructuring efforts.

However, the role AI actually plays in workforce reductions remains a subject of debate. Some industry observers argue that while companies increasingly automate operations using artificial intelligence, market pressures and slowing economic conditions may also be significant drivers behind the layoffs. Others believe references to AI have become a convenient explanation for broader cost-cutting measures during a period of weaker market performance.

For BitGo, the company insists the latest Crypto AI layoff is intended to sharpen its operational focus rather than signal broader financial distress. Whether this strategy positions the crypto custodian for stronger long-term growth will likely become clearer as the company continues investing in stablecoins and AI-powered financial infrastructure while navigating an increasingly competitive digital asset market.

Primary Sources:

• Mike Belshe’s announcement on X
• BitGo filing with the U.S. Securities and Exchange Commission (SEC)