BitGo's IPO: A Strategic Entry into the Public Market for a Fast-Growing Crypto Custody Leader

The institutionalization of digital assets has reached a critical inflection point, and BitGo, a leading crypto custody and infrastructure provider, is poised to capitalize on this shift through its 2025 initial public offering (IPO). As the company prepares to list on the New York Stock Exchange under the ticker symbol BTGO, its valuation rationale, revenue diversification, and regulatory momentum collectively present a compelling case for long-term investor value.

Valuation Rationale: Scaling Infrastructure for Institutional Demand

BitGo's valuation has surged from $1.75 billion in a 2023 funding round to a projected $2 billion valuation target as of its July 2025 S-1 filing. This trajectory reflects the company's ability to scale infrastructure amid a crypto market characterized by volatile investor sentiment but growing institutional adoption. According to a report by , BitGo reported $4.19 billion in revenue for the first half of 2025, a near fourfold increase compared to the same period in 2024. While net income declined to $12.6 million due to rising operational costs, the company's focus on expanding market share and enhancing security solutions-such as multi-party computation (MPC) technologies-justifies its premium valuation.

The valuation also accounts for BitGo's strategic positioning as a foundational infrastructure provider. With $90.3 billion in assets under custody as of June 2025, the firm serves 4,600 institutional clients and 1.1 million end-users globally. This scale, combined with its dual-class share structure (granting CEO Mike Belshe significant control), underscores its ability to maintain long-term vision while navigating regulatory and market uncertainties.

Revenue Diversification: Mitigating Volatility Through Multiple Streams

BitGo's revenue model is a key differentiator in an industry prone to volatility. The company generates income from custody fees, transaction fees, wallet licensing, and staking services. In Q1 2025, custody fees accounted for the lion's share of revenue, driven by institutional demand for secure storage of Bitcoin, Ethereum, and other major assets. However, the firm has diversified into staking and stablecoin offerings, which now contribute meaningfully to its income stream.

highlights that BitGo's revenue surge was accompanied by a decline in net margin, from 2.76% in 2024 to 0.30% in H1 2025. This margin compression reflects strategic investments in digital-asset sales and operational expansion. Yet, the diversification of revenue sources-spanning custody, trading, and infrastructure services-positions BitGo to weather market downturns. For instance, staking services, which accounted for 5.7% of assets under custody in Q4 2025, provide recurring income independent of price fluctuations.

Regulatory Momentum: A Trust Anchor in a Fragmented Landscape

Regulatory clarity has been a cornerstone of BitGo's growth strategy. The company's recent approval for a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC) marks a pivotal milestone. This charter, enabling the formation of BitGo Bank & Trust, National Association, elevates the firm to the same federal regulatory tier as traditional banks, reinforcing its credibility for institutional clients.

Globally, BitGo has expanded its footprint with MiCA-compliant licenses in Germany and VASP/Broker-Dealer approvals in Dubai. These achievements align with the company's mission to serve a geographically diverse client base while adhering to evolving regulatory standards. As noted in , such approvals are critical for attracting institutional investors who prioritize compliance.

Strategic Implications for Long-Term Investors

BitGo's IPO represents more than a liquidity event for early investors-it is a strategic catalyst for scaling its role in the institutional crypto ecosystem. The $201 million fundraising target will fund technology development, acquisitions, and stock-based compensation, further solidifying its infrastructure leadership. For investors, the firm's valuation, while ambitious, is justified by its market-leading position in custody solutions, diversified revenue streams, and regulatory alignment with mainstream finance.

In a sector where trust and compliance are paramount, BitGo's ability to navigate regulatory complexity while scaling infrastructure positions it as a key player in the next phase of crypto adoption. As institutional demand for secure, compliant digital asset services accelerates, the company's IPO offers a unique opportunity to participate in a foundational pillar of the crypto economy.