BitGo's IPO: A Strategic Bet on the Future of Institutional Crypto Infrastructure

The institutional crypto infrastructure sector is undergoing a seismic shift, driven by regulatory clarity, surging demand for secure custody solutions, and the maturation of digital asset markets. At the forefront of this transformation is BitGo, a crypto custody pioneer that has positioned itself as a critical infrastructure provider for institutional clients. With its impending initial public offering (IPO), BitGo's market positioning, valuation trajectory, and regulatory advancements warrant a rigorous evaluation for investors seeking exposure to the next phase of crypto's institutionalization.

Regulatory Tailwinds: A Cornerstone of Credibility

BitGo's 2025 regulatory milestones have solidified its status as a trusted custodian in a sector historically plagued by volatility and scrutiny. The company secured a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC) in December 2025, authorizing the formation of BitGo Bank & Trust, National Association. This charter places BitGo on par with traditional banks, granting it access to critical financial infrastructure such as Fedwire and correspondent banking services. Such regulatory alignment is a significant differentiator in a market where institutional clients demand compliance with legacy financial systems.

Complementing this, BitGo achieved CCSS Level 3 certification-the highest security standard under the Cryptocurrency Security Standard (CCSS)-from the CryptoCurrency Certification Consortium (C4). This certification validates its multi-party computation (MPC) key management, 100% cold storage, and $250 million in insurance coverage, addressing institutional concerns around asset safety. Additionally, the company expanded its global footprint by securing MiCA-compliant licenses in Germany and VASP/Broker-Dealer approvals in Dubai, enabling it to manage $90 billion in assets under custody by July 2025. These certifications underscore BitGo's ability to navigate complex regulatory landscapes, a critical factor for institutions seeking cross-border compliance.

Financial Performance: Revenue Surge Amid Margin Pressures

BitGo's IPO prospectus reveals a dramatic acceleration in revenue growth, albeit with margin compression. For the first half of 2025, the company reported $4.19 billion in revenue, a fourfold increase from $1.12 billion in the same period in 2024. This surge was driven by the adoption of institutional-grade custody services and a client base exceeding 4,621 institutions. Assets under custody reached $90.3 billion as of June 30, 2025, reflecting robust demand for its infrastructure.

However, net income declined to $12.6 million in H1 2025 from $30.9 million in H1 2024, primarily due to rising operational expenses and costs associated with digital asset sales. The net margin contracted from 2.76% to 0.30% in H1 2025, highlighting the challenges of scaling infrastructure while maintaining profitability. While these margins may concern short-term investors, the broader context of market expansion and regulatory tailwinds suggests that BitGo's cost structure is a strategic investment in long-term market capture.

Market Positioning: A Preferred Infrastructure Partner

BitGo's institutional client roster spans public companies, asset managers, and stablecoin issuers, all seeking secure, compliant, and scalable custody solutions. For instance, the company provided custody and staking services for Deutsche Digital Assets' Bittensor (TAO) ETP and enabled institutional access to APT staking. Its infrastructure is tailored to regional requirements across North America, Europe, the Middle East, and the Asia-Pacific, positioning it as a global enabler of digital asset strategies.

The IPO, led by underwriters Goldman Sachs and Citi, aims to raise $201 million to fund technological development, global expansion, and potential acquisitions. This capital allocation strategy aligns with the company's vision to deepen its role as a foundational infrastructure provider in the crypto ecosystem.

Valuation and Investment Considerations

BitGo's valuation has grown from a $1.75 billion Series C round in 2023 to a potential public market valuation that will be determined during its IPO. While direct comparisons to crypto custody peers are limited, the company's regulatory credentials, asset scale, and client growth metrics suggest a compelling value proposition. However, investors must weigh the risks of margin pressures and the nascent nature of the institutional crypto market.

Conclusion: A Strategic Bet on Institutionalization

BitGo's IPO represents more than a capital-raising event-it is a testament to the maturation of institutional crypto infrastructure. By securing top-tier regulatory approvals, scaling its custody solutions, and expanding its global footprint, BitGo has positioned itself as a linchpin in the transition of digital assets into mainstream finance. For investors with a long-term horizon, the company's strategic alignment with regulatory tailwinds and institutional demand makes it a compelling candidate to bet on the future of crypto infrastructure.