Crypto custody and infrastructure provider BitGo is restructuring its team, marking its name on the growing list of digital asset enterprises downsizing staff to pivot toward artificial intelligence. Co-founder and CEO Mike Belshe made the official announcement on Thursday through a social media post, which was also filed with the SEC (U.S. Securities and Exchange Commission). The move involves cutting down the workforce by approximately 15 percent, a decision Belshe described as difficult but necessary in the face of a rapidly transforming financial services landscape.
Strategic Shift Toward AI and Infrastructure
The executive noted that the financial technology environment has transitioned significantly. To remain highly competitive, BitGo intends to streamline its operations and direct its primary focus toward core high-growth areas. These priority sectors include custody security, trading operations, stablecoins, transaction settlement, and infrastructure integrated with AI capabilities.
While the exact number of affected employees was not formally declared by the company, the implications can be drawn from past disclosures. According to the firm's 2025 annual report, BitGo employed 603 full-time workers. A 15 percent reduction from this base suggests that about 90 individuals will lose their jobs. Belshe reassured remaining staff that this layoffs round is an isolated, one-time measure, and further staff cuts are not expected. Highlighting this, the organization continues to advertise dozens of active job openings on its official career portal.
Market Reaction and Financial Realities
These organizational changes come just months after the infrastructure firm made its debut on the public stock market. In January, the company completed its initial public offering (IPO) with a share price of $18, successfully raising $213 million and pushing its market valuation above the $2 billion threshold. Although the first quarter of the year saw an impressive 112.6 percent spike in revenue to reach $3.8 billion, widening net losses have put pressure on the firm's financial health.
Wall Street responded coolly to the downsizing news. Shares of BitGo, which are traded under the ticker BTGO, dropped by almost 5 percent on Thursday, finishing the trading session at $4.80. This closing price represents a steep decline of roughly 73 percent from its initial IPO pricing, showcasing the ongoing skepticism among public investors regarding crypto-focused stocks.
The Broader Trend Across Crypto and Tech
BitGo is far from alone in making deep personnel cuts throughout 2026. The tech and cryptocurrency landscapes have been hit by a massive wave of restructuring. In February, Jack Dorsey's firm Block downsized its team by 4,000 employees, representing about 40 percent of its total workforce. The company explicitly attributed this decision to an increased reliance on automated systems, proactive intelligence tools, and AI software.
Similarly, in May, major digital asset platform Coinbase reduced its head count by 14 percent, while cryptocurrency data analytics firm Dune laid off 25 percent of its employees. By June, Robinhood followed suit by trimming 10 percent of its workforce due to a dip in crypto-related transaction revenues.
Outside the digital asset sector, the wider technology industry has seen more than 120,000 jobs eliminated since the year began. Prominent corporations like Microsoft and PayPal have pointed to AI adoption as a primary catalyst for their respective organizational downsizings. However, industry observers continue to debate whether artificial intelligence is the genuine driving force behind these cuts or simply a convenient corporate justification utilized during a broader economic downturn.
