BitGo, a cryptocurrency custody startup, announced plans for a US initial public offering (IPO) targeting a valuation of up to $1.96 billion, positioning itself to capitalize on growing investor appetite for crypto companies. The Palo Alto, California-based firm's public listing comes at a time when demand for digital asset companies has increased, driven by improving market sentiment and greater institutional participation in the sector.

IPO Structure and Pricing Details

The company has outlined specific parameters for its public offering, targeting significant capital raise through strategic share allocation.

Goldman Sachs and Citigroup are serving as the lead underwriters for the offering, providing institutional backing for the public debut.

Market Context and Industry Trends

The IPO market is expected to maintain its recovery trajectory, extending momentum that began in 2025. However, several headwinds continue to create uncertainty among investors, including tariff-driven market volatility, the impact of a prolonged government shutdown, and a selloff in Artificial Intelligence stocks.

BitGo is not alone in pursuing public market access. Several other crypto firms plan public listings, including crypto exchange Kraken, following successful stock market debuts by stablecoin issuer Circle and crypto exchange Bullish. The cryptocurrency sector has experienced heightened turbulence following a sharp selloff in October, making investors more cautious and companies face higher expectations when raising capital.

Company Background and Market Position

Founded in 2013, BitGo has established itself as one of the largest crypto custody firms in the United States. The company specializes in storing and protecting digital assets for clients, a service that has gained increasing importance as institutional interest in cryptocurrency grows.

According to IPOX research analyst Lukas Muehlbauer, recent pressure on AI and tech valuations has made investors more cautious across riskier assets, leading to a "flight to quality" that favours regulated companies over more speculative crypto ventures. This shift places BitGo in a relatively defensive position within the crypto sector.

Muehlbauer noted that "the company aims to capitalize on the early 2026 market momentum, where small and mid-cap index outperformance has created a favorable window for mid-sized offerings like BitGo." The timing reflects strategic positioning to take advantage of current market conditions despite broader sector challenges.

Crypto custody powerhouse BitGo has officially filed for an initial public offering (IPO) on the New York Stock Exchange, marking a significant milestone in the cryptocurrency industry's push into mainstream finance.

Revenue Soars, Profits Dip

BitGo reported a staggering revenue of $4.19 billion for the first half of 2023, ending June 30. This figure represents a near quadrupling of its revenue compared to the $1.12 billion recorded in the same period last year. The dramatic increase underscores the growing demand for secure digital asset storage and management services in the rapidly evolving crypto landscape.

However, despite the revenue surge, BitGo's profit saw a decline. The company reported a profit of $12.60 million for the first half of 2023, down from $30.90 million in the corresponding period of the previous year. This decrease in profitability amid soaring revenue could indicate increased operational costs or investments as the company scales its operations.

IPO Details and Valuation

Founded in 2013, BitGo has established itself as one of the largest crypto custody firms in the United States. The company's growth and market position were further validated in a 2023 funding round that secured a $1.75 billion valuation.

In its filing, BitGo revealed plans to list on the New York Stock Exchange under the ticker symbol 'BTGO'. The company has enlisted financial heavyweights Goldman Sachs and Citigroup as lead underwriters for the offering, signaling strong institutional backing for the IPO.

Market Timing and Industry Trends

BitGo's IPO filing comes at a time of increased activity in the U.S. IPO market, particularly among crypto-related firms. Recent successful market debuts by companies such as Circle, Bullish, and Figure have demonstrated growing investor appetite for digital asset businesses.

The timing of BitGo's filing aligns with a broader trend of cryptocurrency companies seeking public listings, reflecting the maturing nature of the crypto industry and its increasing integration with traditional financial markets.

BitGo's Market Position

As a crypto custody firm, BitGo plays a crucial role in the cryptocurrency ecosystem by storing and protecting digital assets for its clients. The company's decision to go public could be seen as a move to enhance transparency and credibility in an industry that has faced regulatory scrutiny and security challenges.

The substantial revenue growth reported by BitGo also highlights the increasing adoption of cryptocurrencies and blockchain technology among institutional investors and enterprises, who require secure and compliant custody solutions for their digital assets.

As BitGo prepares for its public debut, the crypto industry and traditional finance sectors will be watching closely. The success of this IPO could pave the way for more crypto-focused companies to enter the public markets, potentially bridging the gap between the digital asset space and conventional finance.

With its strong revenue growth and established market position, BitGo's upcoming IPO represents a significant moment for the cryptocurrency industry, potentially setting new benchmarks for valuation and public market performance in the sector.