BitGo files to go public, testing Wall Street’s appetite for crypto’s plumbing
BitGo is moving ahead with a U.S. initial public offering. The crypto wallet and custody firm aims to raise up to 201 million dollars. The deal could value the company near 1.96 billion dollars. This is a clean read on how much investors want regulated crypto infrastructure, not trading hype.
If the listing prices well, it will mark a milestone. A pure crypto custodian, built for institutions, stepping onto a major U.S. exchange. That sets a tone for 2026 deal flow in digital assets.
Why this deal matters right now
Institutions need safe storage, clear controls, and fast settlement. That is what custody provides. BitGo built its brand around secure wallets, multi-signature controls, insurance, and audits. It sells to funds, exchanges, fintechs, and corporates. In short, it sells the picks and shovels.
Investors have been shifting from pure trading plays to infrastructure. They want recurring fees, sticky clients, and compliance strength. A custodian can offer that mix. It earns from custody, staking support, and related services. Those fees can be steadier than trading spreads.
This IPO is a test of demand for crypto infrastructure, not tokens. Pricing will signal how investors value safety, controls, and compliance in this market.
The market backdrop and what it implies
The IPO window is open, but selective. Quality and price discipline matter. Crypto markets remain volatile. That can lift activity, but it can also hurt sentiment overnight. A custodian sits in the middle. It benefits as assets under custody rise with prices. It suffers if clients pull back.
Investors will compare BitGo to other listed fintech and crypto names. They will look at revenue quality, assets under custody, client concentration, and cost to serve. They will also weigh regulatory capital needs. A custodian must spend on audits, insurance, and licenses. That can be a moat, but it can also be a drag.
Coinbase built a custody arm as part of a larger platform. Fidelity runs a digital assets unit inside a huge firm. BitGo is a pure play. That focus can appeal to investors who want direct exposure to the custody theme.
Regulation will shape the story
Custody is at the heart of digital asset rules. Supervisors want clear segregation of assets and strict controls. Banks, brokers, and advisers must meet high bars to hold crypto for clients. Any shift in those rules can change costs and margins.
BitGo’s value case depends on trust. It needs spotless operations, clean audits, and a strong compliance record. If it secures more state and international approvals, it can unlock new client pools. If rules tighten more than expected, costs can rise and growth can slow.
Watch for any new guidance on digital asset custody for advisers and banks. A rule change can move this stock fast, before or after the lockup ends.
What smart money will study in the S-1
Investors will dig into unit economics. They will ask how much revenue comes from pure custody versus higher beta lines. They will want to see churn, pricing power, and assets under custody growth. They will study insurance coverage and the cost of controls. They will also focus on cash burn and runway.
- Mix of recurring custody fees versus market-sensitive services
- Assets under custody growth and client diversification
- Insurance, audits, and compliance spend as a percent of revenue
- Path to operating profit and free cash flow
- Use of proceeds for product, licenses, and global expansion
Investment take
BitGo gives investors a way to own crypto infrastructure without owning tokens. The upside case is clear. Institutions keep moving into digital assets. They need a qualified, secure, and insured partner. Assets under custody rise, and so do high margin service layers. Cross selling into settlement, staking support, and treasury services can add lift.
The bear case is also clear. Fees compress as rivals scale. A market shock cuts asset values and new mandates. Regulation raises costs faster than revenue can grow. Any security incident, even industry wide, can hit sentiment hard.
For portfolio managers, this is a barbell decision. If you want crypto exposure with controls and recurring fees, this fits. If you want high beta trading upside, it may feel too steady. Price will set the tone. A disciplined valuation can draw long-only demand. A stretch price could leave the book fragile.
Focus on assets under custody growth, net revenue retention, and compliance metrics. Those three signals will tell you if the moat is deepening or not.
The bottom line
BitGo’s push to raise up to 201 million dollars at a near 2 billion dollar value is a watershed for crypto custody. It will show if investors are ready to back the rails that big money needs. If it lands well, more infrastructure names will follow. If it struggles, the lesson will be simple. In crypto, safety sells, but only at the right price.
