Key Takeaways
- Bitgo announced a 15% layoff to streamline operations, hitting the crypto infrastructure job markets.
- Bitgo raised $200M in a 2026 IPO, but its stock dropped 70% to $4.8, dampening crypto listing markets.
- Mike Belshe cut 90 roles to focus on AI, while Coinbase cut 700 to survive shifting tech markets.
Crypto Custody Company Bitgo Announces Layoffs
Bitgo, a company that offers staking, trading, OTC services, financing, settlement, and provides custody for digital assets, is taking action to become leaner in the age of artificial intelligence (AI).
The company, which holds over $100 billion in digital assets for exchanges, hedge funds, and financial institutions, part of the firm’s customer base, announced a round of layoffs affecting a significant part of its workforce as part of a focused move towards new business opportunities.
Mike Belshe, CEO of Bitgo, announced the measure on social media, stressing that it was part of an adaptation process the company is traversing. “The ecosystem has evolved, and the way we build financial services has changed dramatically,” he declared.
“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. Getting there means making BitGo more deliberate than it is today,” he assessed.
The cuts will affect 15% of Bitgo’s workforce, estimated at around 600-610 employees, reducing its headcount by nearly 90 individuals.
“To those of you who are leaving: thank you. You helped shape BitGo into what it is today, and the company will always be better because you were here. I wish you nothing but success ahead,” Belshe declared, anticipating that the company was not anticipating further reductions.
Belshe’s actions come after months of lackluster market performance, after Bitgo became the first crypto company to go public in 2026, raising over $200 million.
Bitgo’s initial public offering listed a stock price of $18 per share. Current prices sit around $4.8 at the time of writing, a drop of over 70% that reflects the current market sentiment that’s hitting crypto firms left and right.
Other firms like Coinbase and Kraken have also been affected by market conditions, reporting similar actions to optimize their operations in an AI-centric world. In May, Coinbase announced a round of 700 layoffs, while Kraken’s Payward shed 150 workers.
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