BitGo IPO at $18: How Digital Asset Custody Excels in Volatile Market

BitGo priced its initial public offering at $18 per share on the evening of Jan. 22, valuing the company at approximately $2 billion on a fully diluted basis. The debut on the New York Stock Exchange under the ticker BTGO marks the first IPO focused entirely on cryptocurrencies of 2026, offering public investors their first direct exposure to the digital asset custody business. BitGo’s entry comes at a strategic time, as Bitcoin trades around $84,890, with the sector facing liquidation pressures.

Why custody becomes a haven in times of crypto volatility

While many crypto firms face difficulties in 2025, custody emerges as a pillar of stability. Matthew Sigel, head of digital asset research at VanEck, underlines that BitGo stands out precisely for its focus on custody with constant revenues and service-oriented. Unlike transaction-based businesses, which fluctuate with trading volume, custody generates more predictable and resilient demand.

The initial valuation of $2 billion, while significant, remains modest compared to other companies in the industry whose values are often tied to the volatility of cryptocurrency prices. This positioning reflects the market’s perception that custody offers less systemic risk than trading-centric models.

Revenue Structure: Custody and Staking as Predictable Growth Engine

BitGo’s economic core rests on two pillars: custody and staking, which account for more than 80% of revenues and generate much more predictable earnings than trading operations. When analysts exclude gross trading costs, which artificially inflate reported revenues, the picture becomes crystal clear: custody and staking generate approximately $160 to $170 million in real economic revenue annually, while trading contributes only a few million in net revenue.

This differentiated business model justifies premium multiples over peers such as Coinbase or Galaxy Digital, according to Sigel. Stablecoin services still remain nascent, functioning as long-term growth options rather than immediate earnings drivers. The clarity of this structure gives investors visibility into what really drives the company.

Challenging context: other crypto companies suffer significant drops

The timing of BitGo’s IPO contrasts dramatically with the performance of peers listed in 2025. Bullish, owner of CoinDesk, has suffered a drop of more than 40% in six months. Owlting, which is focused on stablecoin infrastructure and payments, has plummeted by around 90%. Gemini Space Station, a custody and trading company linked to the Winklevoss brothers, fell approximately 70%.

The CoinDesk 20 index fell 33% over the same period, reflecting how the public market devalued the sector in the face of retracting token prices and reduced risk appetite. In this adverse scenario, custody emerges as a segment less sensitive to transaction fluctuations.

Growth projections: from $2 billion in valuation to $400 million in revenue by 2028

VanEck analysts project that BitGo could generate more than $400 million in annual revenue and surpass $120 million in EBITDA by 2028. These estimates, if achieved, would justify a valuation significantly higher than the initial public offering price and sustain a premium multiple over more liquid competitors.

The continued focus on custody and staking positions the company to expand its institutional client base, even in periods of weakening crypto market. While additional services develop, custody remains the bedrock generating predictable, long-term revenue, differentiating BitGo in an industry that is historically volatile and dependent on transaction cycles.