BitGo Completes IPO Raising Over $212 Million

TLDR

• BitGo raised over $212 million in its IPO.
• The firm holds 2,369 BTC, impacting its financial stability.
• Projected revenue growth of 26% per year until 2028.

BitGo, a cryptocurrency custody provider, has recently completed its U.S. initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol “BTGO.” The company’s shares were priced at $18 each, which allowed BitGo to raise over $212 million, valuing the company at approximately $2.08 billion. The IPO offered 115.56 million shares to the public.

The IPO was led by major underwriters such as Goldman Sachs and Citigroup, with an option available for up to 1,770,000 additional shares. This move marks BitGo as the first crypto custody firm to go public in 2026, positioning itself uniquely in the rapidly evolving cryptocurrency market.

Financial Projections and Market Outlook

According to Matthew Sigel, Head of Digital Assets Research at VanEck, the most optimistic scenario sees BitGo attaining a market cap exceeding $3 billion. This prediction hinges on several factors, including the company’s current valuation and its expected revenue growth.

BitGo’s revenue is projected to grow at a rate of 26% per year, anticipating revenues of over $400 million and an EBITDA of $120 million by 2028. This optimistic outlook is supported by BitGo’s strong market position and a notable security record with zero hacking losses to date.

The firm has also released financial expectations with estimates that 2025 revenue could reach $15.5 billion, a substantial increase from the previously recorded $2.5 billion. However, they anticipate a net income between $3.16 million and $3.52 million after reporting a loss of $7 million in 2024.

Impact of Cryptocurrency Holdings

BitGo’s assets are heavily tied to Bitcoin (BTC). The company holds 2,369 BTC on its balance sheet, making the price movement of Bitcoin a significant factor in BitGo’s financial stability and growth. Experts suggest that a potential 33% rise in Bitcoin price, reaching over $120,000, could boost BitGo’s market cap by $72 million, aiding the company in reaching a target share price of $26.50.

Despite BitGo’s debut being described as strong, with early indications pointing to a 20% increase above its IPO price, the stock later fell below $18. This volatility highlights the sensitive nature of BitGo’s financial performance in relation to the broader cryptocurrency market.

Future Growth and Development Opportunities

BitGo is projected to benefit from various growth drivers in the cryptocurrency market. These include the rising interest in digital asset tokenization, which saw a 270% year-on-year increase, as well as the expanding potential for stablecoin custody and broader institutional adoption.

While current primary data does not include details on Ethereum (ETH), altcoins, or DeFi protocols, BitGo’s strategy emphasizes Bitcoin exposure, potentially positioning the firm to capitalize on Bitcoin’s growth and market dynamics. This is reflected in BitGo’s valuation targets and projected market share expansion.