BitGo sets its IPO at $18, confident in the strength of digital custody

Crypto custody firm BitGo set its initial public offering (IPO) price at $18 per share on Jan. 22, valuing the company at roughly $2 billion ahead of its debut on the New York Stock Exchange under the ticker BTGO. This pricing decision marks a major milestone: the first digital asset-focused IPO of 2026, offering public market investors their first opportunity to directly access a pure digital asset custody business without direct exposure to trading volatility.

The Adverse Context: Why BitGo Stands Out Among Its Competitors

BitGo’s IPO comes at a particularly challenging time for crypto-related companies. Several firms in the sector that sought public financing during 2025 have experienced significant drops. Bullish, which owns CoinDesk, has depreciated more than 40% in recent months. Owlting, focused on stablecoin infrastructure and payments, has suffered a devaluation of close to 90%. Gemini Space Station, the custody and trading platform linked to the Winklevoss brothers, has retreated roughly 70%.

During the same period, the CoinDesk 20 index — which groups the top crypto companies — fell around 33%, reflecting how the public market has substantially depreciated the sector in the face of falling token prices and a more restrictive risk appetite. In this scenario, BitGo presents a key differentiator from these competitors.

Custody and staking: the most predictable income model

Unlike trading volume-driven businesses, BitGo generates the majority of its revenue through custody and staking services. Matthew Sigel, head of digital asset research at VanEck, highlights that these lines of business account for more than 80% of the company’s revenue and produce more stable and consistent flows than transaction-based models.

When trading costs reported in gross terms under accounting standards are excluded, BitGo’s true economic core emerges clearly. Custody and staking generate between $160 million and $170 million in real annual economic income, while trading brings in just a few million dollars. Stablecoin services, meanwhile, are still in the early stages.

This revenue composition is what differentiates BitGo from companies like Coinbase or Galaxy Digital, which have greater exposure to trading volatility. Analysts stress that the key question for investors is whether the custody and staking franchise can sustain compound growth, with nascent businesses seen as options for future expansion rather than drivers of immediate profitability.

Financial projections: validating a valuation higher than the IPO

Matthew Sigel estimates that BitGo could generate more than $400 million in revenue by 2028, with more than $120 million in EBITDA projected for that year. These projections, if realized, would justify a significantly higher price than the IPO price of $18, supporting a premium multiple relative to its higher-intensity trading peers.

The appeal for institutional investors lies precisely in this profile: a crypto company with predictable revenues, expanding margins, and reduced exposure to the volatility cycles that have punished other players in the sector. While transaction-based businesses fluctuate with market sentiment, custody and staking services offer a more structured and resilient revenue base.

What’s Next: Execution as a Determining Factor

While the market has already begun to price in BitGo’s differentiated proposition compared to higher-volatility traditional competitors, long-term success will depend on whether the company manages to execute its growth plan. Investors will be watching custody and staking performance closely, in addition to progress in emerging business lines such as stablecoin services.

BitGo’s IPO at $18 thus represents a vote of confidence from the market in a more stable business model within the digital asset ecosystem, a stark contrast to the trajectories of its peers and a clear commitment to the strength of custody over speculation.