BitGo's Revenue Quadruples, Profits Fall as Scaling Costs Mount

The U.S. cryptocurrency industry is undergoing a pivotal transformation as regulatory frameworks evolve, with major custody firms like BitGo emerging as key players in shaping the sector’s governance. BitGo, a leading digital asset custodian, filed for an initial public offering (IPO) in September 2025, revealing explosive financial growth and strategic engagement with regulators. The company reported $4.19 billion in revenue for the first half of 2025, a near fourfold increase from $1.12 billion in the same period in 2024. Despite this growth, net income fell to $12.6 million from $30.9 million year-over-year, reflecting rising operational costs as BitGo scales to meet institutional demand. The firm now manages $90.3 billion in assets across 1.14 million users, with Bitcoin and Sui dominating its portfolio at 48.5% and 20.1% of assets, respectively.

BitGo’s IPO filing underscores the growing institutional interest in crypto custody services, a sector projected to grow at a 24% compound annual rate through 2033, reaching $4.7 trillion in market value. The company’s dual-class share structure, granting co-founder and CEO Mike Belshe 15 votes per Class B share, ensures continued control post-listing. Proceeds from the offering will fund technology development, acquisitions, and stock-based compensation, positioning BitGo to compete with traditional banks and fintech firms entering the crypto custody space. The IPO follows successful listings by peers such as Circle and Bullish, signaling a shift in investor sentiment toward crypto as a mainstream asset class rather than speculative instruments.

Regulatory engagement is central to BitGo’s strategy. The firm recently participated in the U.S. Securities and Exchange Commission’s (SEC) Project Crypto initiative, with executives meeting SEC Chairman Paul Atkins to discuss updates to custody rules and cybersecurity protocols. This collaboration highlights the SEC’s evolving role in balancing innovation with investor protection. Meanwhile, the broader market context includes a surge in U.S. IPO activity for crypto firms, driven by regulatory clarity under the Trump administration and rising institutional adoption. Josef Schuster of IPOX noted that investors now view digital assets as distinct from traditional equities, a shift that has bolstered demand for custody infrastructure.

The digital asset custody sector’s expansion is supported by robust institutional demand, with 68% of financial institutions planning to adopt or expand custody services in the next two years. BitGo’s global footprint, including recent expansions into South Korea and the UAE, aligns with this trend as firms seek to serve markets with favorable regulations and high smartphone penetration. The company’s role in managing the Trump-linked World Liberty stablecoin further illustrates its integration into both institutional and political spheres.

As the U.S. crypto rulebook takes shape, firms like BitGo are at the intersection of innovation and regulation. Their ability to secure public market funding and navigate evolving compliance frameworks will influence the sector’s trajectory. With a $90.3 billion asset base and a dual-listing strategy on the NYSE, BitGo’s IPO represents not just a financial milestone but a broader indicator of the maturing crypto ecosystem. The outcome of its public offering and regulatory engagements will likely set precedents for how custody firms, regulators, and institutional investors collaborate to define the future of digital asset governance.

Source: [1] BitGo Files for IPO With $4.2B in H1 2025 Revenue, $90B in (https://www.coindesk.com/business/2025/09/20/bitgo-files-for-ipo-with-usd4-2b-in-h1-2025-revenue-usd90b-in-crypto-on-platform)

[2] BitGo Discloses its Financials in Latest SEC Filing Ahead of IPO (https://www.cryptotimes.io/2025/09/20/bitgo-discloses-its-financials-in-latest-sec-filing-ahead-of-ipo/)

[3] BitGo Reports 4X Growth in First Half of 2025 as It Files for IPO (https://moneycheck.com/bitgo-reports-4x-revenue-growth-in-first-half-of-2025-as-it-files-for-ipo/)

[4] BitGo's IPO Filing Reveals Explosive Revenue Growth Amid Crypto … (https://genfinity.io/2025/09/20/bitgo-ipo-filing-reveals-explosive-revenue-growth-amid-crypto-custody-expansion/)

[5] BitGo IPO shows $4.19B revenue and $90B assets on platform? (https://cryptonewsbytes.com/bitgo-ipo-shows-4-19b-revenue-and-90b-assets-on-platform/cryptocurrency/)

[6] Digital Asset Custody Market Size, Share & Report [2025-2033] (https://www.globalgrowthinsights.com/market-reports/digital-asset-custody-market-116625)

[7] Crypto custody startup BitGo reveals near fourfold revenue jump … (https://tech.yahoo.com/business/articles/crypto-custody-startup-bitgo-files-205855831.html)

[8] BitGo’s assets under custody surge to $100B (https://www.cryptopolitan.com/bitgos-assets-under-custody-surge-to-100b/)

[9] BitGo Becomes First Crypto Custodian to File for US IPO (https://cryptonews.com/news/bitgo-becomes-first-crypto-custodian-to-file-for-us-ipo/)

[10] BitGo IPO Filing Reveals $90B in Assets Under Custody (https://web.ourcryptotalk.com/news/bitgo-ipo-filing-reveals-90b-in-assets-under-custody)