TLDR
- BitGo priced shares at $18 each, exceeding the expected $15-$17 range and raising $212.8 million for the crypto custody company
- Trading starts January 22, 2026 on the New York Stock Exchange with ticker symbol BTGO, marking the year’s first major crypto IPO
- The company manages $104 billion in digital assets and earns most revenue from custody and staking rather than trading fees
- Recent crypto IPOs have struggled badly, with Bullish down 40%, Owlting down 90%, and Gemini Space Station down 70% in six months
- VanEck analysts project BitGo could reach $400 million in revenue and $120 million in EBITDA by 2028
BitGo Holdings completed pricing for its initial public offering on Tuesday at $18 per share. The final price exceeded the company’s initial target range of $15 to $17 per share.
The crypto custody provider will raise approximately $212.8 million through the offering. BitGo’s valuation stands at roughly $2 billion on a fully diluted basis.
The company is offering 11,026,365 Class A common shares. Existing shareholders will sell an additional 795,230 shares.
Shares begin trading Wednesday on the New York Stock Exchange under ticker BTGO. Goldman Sachs and Citigroup are leading the underwriting team.
BitGo granted underwriters a standard 30-day option to buy up to 1.77 million extra shares. The deal is scheduled to close on January 23.
The above-range pricing shows strong demand from institutional investors. This represents the first major cryptocurrency company to go public in 2026.
Founded in 2013, BitGo has grown into one of America’s largest crypto custodians. The platform currently manages $104 billion in digital assets.
Revenue Model Built on Custody Services
BitGo’s business differs from most crypto companies in how it makes money. More than 80% of revenue comes from custody and staking services.
This model creates more stable income compared to trading platforms. Core economic revenue is estimated between $160 million and $170 million per year.
Trading activities contribute just a few million dollars to net revenue. Stablecoin services are still in early development stages.
Matthew Sigel from VanEck said BitGo’s revenues grew even during 2025’s weak crypto markets. The custody business generates predictable cash flow regardless of price swings.
Sigel’s team estimates the company could hit $400 million in revenue by 2028. Projected EBITDA for that year exceeds $120 million.
Crypto Stocks Face Tough Market Conditions
BitGo enters public markets during a challenging period for crypto equities. Companies that listed in 2025 have seen sharp price declines.
Bullish, which owns CoinDesk, dropped more than 40% over six months. Owlting fell nearly 90% during the same timeframe.
Public market investors have pulled back from the crypto sector. Falling token prices and risk aversion have hurt valuations across the board.
Banking Charter Approval
BitGo received conditional approval for a U.S. banking charter in December 2025. This allows the company to operate as a federally regulated trust bank.
Ripple and Circle received similar approvals. The regulatory clarity helps position BitGo for institutional adoption.
The custody-focused business model may command premium valuations compared to trading-heavy competitors. Analysts point to companies like Coinbase and Galaxy Digital as comparison points.
BitGo’s accounting can appear complex because certain trading activities inflate gross revenue. When stripped out, the custody and staking core becomes clearer.
The company’s services include digital wallets, staking, and settlement alongside custody. BitGo is positioning itself as infrastructure for long-term crypto adoption rather than speculative trading.
The post BitGo Raises $212 Million as Investors Bet on Crypto Infrastructure appeared first on Blockonomi.
Source: https://blockonomi.com/bitgo-raises-212-million-as-investors-bet-on-crypto-infrastructure/