After a much anticipated public debut, BitGo Holdings launched on the US market with a stock value priced above initial expectations. Interestingly, BitGo’s listing comes at a time when the crypto market is struggling with price swings and weak sentiments.
BitGo IPO Draws Investor Interest Despite Crypto Market Volatility
BitGo sold 11.8 million shares at $18 each, above the marketed range of $15 to $17. The deal raised $212.8 million and valued the company at approximately $2.08 billion.
According to a Reuters report, the firm is set to list on the New York Stock Exchange under the ticker “BTGO.” Meanwhile, Goldman Sachs and Citigroup will serve as lead underwriters for the public offering.
BitGo is a California-based crypto custody firm founded thirteen years ago. While most exchanges rely heavily on trading volumes, BitGo generates most of its revenue from custody, staking, and related services. According to the firm, this model tends to be less volatile.
Custody services have become an increasingly important niche in the crypto space. And in light of this, banks and even asset managers are expanding their exposure to cryptocurrencies.
Interestingly, BitGo’s IPO comes as lawmakers advance on the market structure bill. According to some within the cryptosphere, the bill could help reshape the industry once finalized.
However, some crypto focused firms, including Coinbase, have warned that parts of the proposal could hurt core operations.
Recent months have also seen sharp swings in crypto prices, including a broad selloff in October that made IPO investors more selective.
Listing May Shape Investor Appetite for Upcoming Crypto IPOs
BitGo’s debut may serve as a test for others waiting in the pipeline. Crypto-focused asset manager Grayscale and exchange operator Kraken are among firms reported to be considering listings this year. Their plans follow earlier 2025 debuts by Circle and Figure, which occurred during a stronger market phase for digital asset stocks.
Several factors explain why BitGo attracted solid investor demand:
- Assets under management crossed $104 billion which is nearly double the previous year.
- Nine-month revenue rose about 65% year over year to nearly $140 million.
- Custody and staking account for more than 80% of total revenue.
- The business relies less on trading volumes than many crypto peers.
- Its client base includes large institutions seeking secure storage solutions.
Matthew Sigel, head of digital assets research at VanEck, said BitGo stands out as one of the few crypto firms to grow revenue during a weaker market. He compared that performance with Coinbase’s gains in assets and revenue.
Sigel estimates that the firm could generate more than $400 million in annual revenue. More so, he predicts that BitGo will post EBITDA of over $120 million by 2028. According to him, these estimates support a valuation above the IPO price. Meanwhile, VanEck has placed a fair value near $2.4 billion, implying upside from current levels.