BitGo's High-Stakes Bet: Growth Over Profits as IPO Looms

Crypto custodian BitGo reported a significant revenue surge in the first half of 2025, with $4.19 billion in revenue—nearly quadruple the $1.12 billion recorded during the same period in 2024. The company, preparing for a U.S. initial public offering (IPO), disclosed this data in its S-1 filing with the Securities and Exchange Commission (SEC). Despite the revenue growth, net income declined to $12.6 million from $30.9 million in the prior year, attributed to rising operational costs as the firm scales to meet institutional demand for crypto custody services The Block, (https://www.theblock.co/post/371504/crypto-custodian-bitgo-reveals-2025-revenue-surge-in-us-ipo-filing)^[1].

BitGo’s IPO filing, led by underwriters Goldman Sachs and Citigroup, outlines plans to list on the New York Stock Exchange under the ticker symbol BTGO. The company, founded in 2013, now manages $90.3 billion in assets across 1.1 million users and 4,600 institutional clients. Its client base includes contracted institutions and high-net-worth individuals, with a significant portion of assets concentrated in Bitcoin (48.5%), Sui (20.1%), Solana (5.7%), XRP (3.9%), and Ethereum (3.0%) MoneyCheck, (https://moneycheck.com/bitgo-reports-4x-revenue-growth-in-first-half-of-2025-as-it-files-for-ipo/)^[2]. The filing also highlights a dual-class share structure, granting co-founder and CEO Mike Belshe majority voting power, though the firm stated it does not intend to rely on governance exemptions under NYSE rules CoinDesk, (https://www.coindesk.com/business/2025/09/20/bitgo-files-for-ipo-with-usd4-2b-in-h1-2025-revenue-usd90b-in-crypto-on-platform)^[3].

The revenue surge reflects growing institutional adoption of crypto, driven by regulatory clarity and demand for secure custody solutions. BitGo’s profit margin contracted to 0.30% in the first half of 2025, down from 2.76% in 2024, underscoring the cost pressures of expanding infrastructure. The firm’s valuation, last at $1.75 billion in a 2023 Series C round, contrasts with its current financial performance, which prioritizes market share over immediate profitability. Analysts note that the decline in net income aligns with industry trends, where crypto firms invest heavily in infrastructure amid heightened competition The Daily Hodl, (https://dailyhodl.com/2025/09/21/crypto-custody-firm-bitgos-revenue-nearly-quadruples-to-4190000000-in-2025-report/)^[4].

BitGo’s IPO comes amid a wave of crypto-related public offerings, including stablecoin issuer Circle and exchange Bullish. The company’s strategic partnerships, including its role as custodian for USD 1—a stablecoin tied to the U.S. government—highlight its expanding influence in the sector. However, the filing cautions that political affiliations could attract regulatory scrutiny or public backlash, a risk the firm acknowledges in its disclosures Coinpaper, (https://cryptorank.io/news/feed/cb6b9-bit-go-reports-4-19-billion-revenue-in-2025-ahead-of-ipo)^[5]. Additionally, BitGo’s recent acquisition of a BaFin license in the EU positions it to compete with regulated peers like Coinbase and Kraken, further solidifying its global footprint Coinpaper, (https://cryptorank.io/news/feed/cb6b9-bit-go-reports-4-19-billion-revenue-in-2025-ahead-of-ipo)^[6].

The IPO filing also details BitGo’s use of proceeds, which will fund technology development, acquisitions, and stock-based compensation. Market analysts suggest the offering could test investor sentiment toward crypto infrastructure firms, with outcomes potentially influencing similar companies considering public listings. As the U.S. crypto sector gains regulatory momentum, BitGo’s ability to balance growth with profitability will be critical to its long-term viability. The company’s IPO, slated for the fall of 2025, will serve as a bellwether for the sector’s maturation and institutional acceptance Blockchain Magazine, (https://www.blockchainmagazine.net/depin-in-2025-the-11-biggest-crypto-projects/)^[7].