Investors in BitGo Holdings, Inc. (NYSE: BTGO) face an August 7, 2026 deadline to seek appointment as lead plaintiff in a securities class action lawsuit alleging the company made materially false and misleading statements regarding its business operations and financial stability. The Rosen Law Firm, Schall Brown & Schwartz LLP, Levi & Korsinsky LLP, and now The Portnoy Law Firm have issued reminders to affected shareholders. The lawsuit targets those who purchased Class A common stock between January 22, 2025, and May 13, 2026. The stakes for investors are high, as the complaint alleges significant deterioration in operational metrics and a lack of reasonable basis for the company's public statements during the initial public offering (IPO) period.

Background: IPO and Allegations

BitGo operates as a digital asset infrastructure company. The company conducted its IPO on January 22, 2026, selling 11,821,595 shares of Class A common stock at an initial offering price of $18.00 per share for proceeds of over $187.58 million before expenses. The lawsuit asserts that the Registration Statement and Prospectus filed in January 2026 contained untrue statements of material fact. Specifically, the complaint alleges that management downplayed the risk of declining digital asset prices and understated the impact of digital asset price volatility on BitGo's revenue, which relies on a percentage-based fee model. The company touted "strong and resilient" business fundamentals that allegedly lacked a reasonable basis.

The Portnoy Law Firm advises that the Offering Documents were negligently prepared and failed to disclose that defendants understated the scope and severity of the risk that declining digital asset prices posed to the Company’s business and financial performance. Consequently, statements regarding BitGo’s financial performance and business prospects as a public company lacked a reasonable basis.

Financial Performance and Stock Decline

The complaint highlights a significant deterioration in operational metrics during the class period. The Digital Asset Sales margin reportedly fell from 0.47% to 0.21% year-over-year, and the company's take rate dropped to approximately 21 basis points for the full year, falling below analyst expectations of 27 basis points. Assets on Platform fell to $81.6 billion, a 9% year-over-year decrease from the trajectory highlighted in the IPO, while Assets Staked plummeted 51% year-over-year to $15.6 billion.

Following the announcement of its fourth quarter and full year 2025 results on March 26, 2026, BitGo's stock price fell $1.43 per share, or 15.71%, to close at $7.67 per share on March 27, 2026. A subsequent disclosure on May 13, 2026, regarding a Q1 2026 net loss of $60.7 million caused an additional stock decline of 17.2%, with shares falling $2.05 to close at $9.86 per share on May 14, 2026.

Legal Proceedings and Individual Liability

The case is governed by the Private Securities Litigation Reform Act of 1995. Investors wishing to serve as lead plaintiff must file papers no later than August 7, 2026. The Court generally selects the applicant with the largest financial interest in the relief sought who is otherwise typical and adequate. Appointment as lead plaintiff is not required to partake in any recovery, and shareholders may remain an absent class member. All representation is on a contingency fee basis, with no fees or expenses required from shareholders.

The complaint names Michael A. Belshe, BitGo's Co-Founder, Chief Executive Officer, Chief Technology Officer, President, and Director, and Edward Reginelli, BitGo's Chief Financial Officer, as Exchange Act Individual Defendants. The action alleges these executives possessed the power to control the contents of BitGo's SEC filings and press releases. Additional individual defendants who served as Directors and signed the Registration Statement include Chen Fang (Chief Revenue Officer), Brian Brooks, Justin Evans, Brian Murray, Sunita Parasuraman, and Vivek Pattipati. Claims are brought under Section 15 of the Securities Act of 1933 and Section 20(a) of the Securities Exchange Act of 1934, which imposes liability on controlling persons. The complaint also charges that certifications made under Sections 302 and 906 of the Sarbanes-Oxley Act were made when financial statements allegedly lacked a reasonable basis.

Focus on Chen Fang

New filings emphasize the role of Chen Fang, BitGo's Chief Revenue Officer and Director. As CRO, Fang was allegedly responsible for revenue streams most affected by the risks claimed to be understated, including Digital Asset Sales revenue estimated at $15.5 billion for FY 2025. The complaint alleges Fang authorized the Registration Statement which:

• Characterized business fundamentals as "strong and resilient" despite known correlations between digital asset prices and core revenue.
• Projected net income from operations between $3.2 million and $3.5 million for FY 2025, when the company ultimately reported a $14.8 million net loss.
• Touted Assets on Platform reaching $104.0 billion by September 2025 without adequately disclosing the ongoing 9% year-over-year decline to $81.6 billion.
• Presented Digital Asset Sales margin expectations that proved dramatically overstated as margins fell from 0.47% to 0.21%.

Shareholders may contact The Rosen Law Firm at 866-767-3653 or case@rosenlegal.com , Schall Brown & Schwartz LLP at 310-301-3335 or bschall@schallfirm.com , Levi & Korsinsky LLP at jlevi@SueWallSt.com or (888) SueWallSt, or The Portnoy Law Firm at 310-692-8883 or lesley@portnoylaw.com to determine eligibility.

BitGo Bank and Trust, National Association, a subsidiary of BitGo Holdings, Inc., and OTC Markets Group have announced their intention to pursue a strategic alliance focused on advancing digital asset access for over 150 registered broker-dealers. The partnership aims to integrate digital asset trading and custody infrastructure with OTC Link ATS, an SEC-regulated alternative trading system. This initiative is designed to support a range of digital asset securities and lay the groundwork for broker-dealers to expand into tokenized assets, commodities, and broader blockchain-based financial markets as regulatory frameworks mature.

Under the proposed framework, subscribed broker-dealers would gain the ability to quote, price, and execute trades in digital asset securities on the same regulated electronic trading infrastructure currently used for NMS and OTC equities markets. The connection will be powered by MatchHub, Elysium’s post-trade platform, which links OTC Link ATS to digital asset custodians and facilitates the coordination of reach transactions through settlement.

BitGo Bank & Trust is designated to serve as the qualified custodian, securing assets and facilitating settlement between counterparties through Go Network, its offchain settlement infrastructure. The alliance intends to preserve traditional market structure principles within digital asset markets by leveraging the OTC Link ATS’s Qualified Interdealer Quotations System for market-making and best execution. BitGo Bank & Trust will provide enterprise-grade fiduciary oversight of tokenized assets, utilizing a bankruptcy-remote framework designed to segregate client assets from BitGo’s corporate assets.

Strategic Implications

The proposed alliance underscores a broader institutional shift toward interoperable, blockchain-based financial infrastructure. As digital assets increasingly converge with traditional capital markets, the collaboration prioritizes regulated custody, transparent settlement, and open market infrastructure capable of supporting the full spectrum of financial products.

Key Roles and Infrastructure

"The future of digital asset markets will depend on infrastructure that institutions can trust," said Mike Belshe, CEO and Co-founder of BitGo. "Financial markets function best when trading, custody and settlement responsibilities are clearly separated, and fiduciary protections remain intact."

Cromwell Coulson, President and CEO of OTC Markets Group, emphasized the readiness of the infrastructure. "OTC Link ATS was built as mission-critical, electronic trading infrastructure and our relationship with BitGo is intended to extend that framework into digital assets," Coulson stated.