BitGo (BTGO) Stock: IPO Euphoria Fades as Shares Tumble Below Offer Price

TLDR

• BitGo (BTGO) priced its IPO at $18 per share and jumped 25% on opening day before reversing gains and falling below the offer price
• The stock dropped as much as 13.4% on Friday and closed at $14.50, representing a 21% decline from the IPO price
• VanEck predicts BitGo stock could reach $26.50 within 12 months, a 65% gain from the IPO price, if Bitcoin trades above $120,000
• The company raised over $212 million in its IPO and holds $90 billion in assets under custody with 2,369 BTC on its balance sheet
• BitGo is the first publicly traded pure-play crypto custody business with over 80% of revenues from sticky service businesses like custody and staking

BitGo Holdings made its public debut on the New York Stock Exchange this week under the ticker BTGO. The crypto custody company priced shares at $18 each.

The stock jumped 25% on opening day. That early enthusiasm didn’t last long.

Shares quickly reversed course as investors took profits. The stock fell below its IPO price by Friday.

BTGO closed at $14.50 in its first full trading session. That’s a 21% drop from the offering price.

The stock fell as much as 13.4% during Friday’s session according to Yahoo Finance data. The volatility reflects several factors at play.

Profit-taking hit the stock after the first-day pop. Newly listed companies typically have limited public floats. This can amplify price swings.

Broader uncertainty around crypto equities also played a role. These stocks have been prone to sharp movements as investor sentiment shifts.

BitGo raised over $212 million in the IPO. The company was valued at $2 billion at the offering price.

The digital asset custodian manages over $90 billion in assets. It filed regulatory paperwork with the SEC in September 2025 signaling its IPO plans.

VanEck Sees Big Upside Despite Rocky Start

Investment manager VanEck released bullish forecasts for BitGo stock. Matthew Sigel, VanEck’s head of digital assets research, shared price targets in a post on X.

VanEck’s 12-month target puts BTGO at $26.50 per share. That represents a 65% gain from the IPO midpoint.

The firm’s most bullish scenario estimates a fair value market cap above $3 billion. Their base case is more conservative at $2.4 billion, or $21 per share.

That still represents a 30% upside from the middle of the offering range. VanEck justifies the valuation based on BitGo’s revenue mix.

The custody company derives over 80% of revenues from sticky service businesses. This includes custody and staking revenue.

Compare that to Coinbase, which gets only 40% from these services. VanEck argues this creates more predictable earnings than transaction-focused businesses.

The firm expects BitGo to grow revenues by 26% through 2028. That would put the company on track for over $400 million in revenue and $120 million in EBITDA by 2028.

Bitcoin Price Could Be Key Catalyst

VanEck outlined several bullish fundamentals for the stock. BitGo is the first publicly traded pure-play crypto custody business.

The company likely grew revenues more than 50% during 2025 despite weak crypto markets. That’s rare among publicly traded crypto companies.

Tokenized real-world assets are up 270% year-over-year. VanEck sees upside from this trend as BitGo could serve as custodian for companies using stablecoins.

The firm also highlighted BitGo’s security record. The company has never suffered hacking losses in its custody operations.

VanEck believes BitGo stock could benefit if Bitcoin trades back above $120,000 over the next 12 months. BitGo holds 2,369 BTC on its balance sheet.

That Bitcoin exposure could drive shares to $26 within 12 months under the bullish scenario. The custody business provides steady revenue while the Bitcoin holdings add leverage to crypto price movements.

Other crypto companies are exploring public listings despite market pressure. Hardware wallet provider Ledger is considering a US IPO at a valuation exceeding $4 billion.

Digital asset exchange Kraken raised $800 million at a $20 billion valuation. This has fueled speculation about a potential IPO.

However, recent IPO performance has been uneven. Companies that went public in 2025 have underperformed the S&P 500 according to Bloomberg data.

Mike Bellin, an IPO expert at PwC, noted that investors have become more selective. Companies must enter the market with stronger operational direction and clearer growth stories.

BitGo filed its IPO paperwork in September 2025 and completed the offering at $18 per share this week.

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