BitGo Files for $201M NYSE IPO at $1.96B Valuation Amid Crypto Custody Market Growth

Crypto asset custodian BitGo has filed for an initial public offering on the New York Stock Exchange, seeking to raise up to $201 million through the sale of 11.8 million shares priced between $15 and $17. At the upper end of this range, the company would achieve a $1.96 billion valuation. This move positions BitGo among the first pure-play cryptocurrency custody firms to pursue a public listing, signaling maturation in institutional crypto infrastructure.

Founded in 2013, BitGo provides secure storage solutions for digital assets, serving institutional clients including hedge funds, exchanges, and corporations. The company pioneered multi-signature wallet technology and now claims to custody over $100 billion in assets. Unlike consumer-facing exchanges, BitGo focuses exclusively on enterprise-grade custody – a critical infrastructure layer enabling institutional participation in digital asset markets.

The IPO comes during a period of regulatory normalization for crypto custodians. Recent SEC approvals for spot Bitcoin ETFs required such funds to partner with qualified custodians, validating BitGo's business model. Competitors like Coinbase Custody and Anchorage Digital have seen increased demand following these regulatory developments. BitGo's S-1 filing indicates it will use IPO proceeds to expand its compliance infrastructure and develop new institutional products, including staking and collateral management services.

Market context remains complex. While Bitcoin's price has rebounded approximately 120% from late 2023 lows, regulatory uncertainty persists. The SEC continues litigation against major exchanges, and proposed legislation like the Digital Asset Anti-Money Laundering Act could impose new requirements. BitGo's filing acknowledges these risks, noting that "changes in regulatory frameworks may adversely impact demand for our services."

Financially, BitGo operates in a capital-intensive sector. Custodians must maintain stringent security protocols, insurance coverage, and compliance teams – all reflected in operating costs. The company hasn't disclosed recent revenue figures, but 2023 industry data from firms like Copper suggests institutional custody fees typically range from 0.5% to 1.5% of assets under management annually.

Compared to traditional financial custodians, BitGo's targeted valuation appears aggressive. At $1.96 billion, it would command nearly double the price-to-sales multiple of established asset custodians like State Street. However, this premium reflects anticipated growth in digital asset adoption. Projections from firms like BCG suggest institutional crypto holdings could reach $1 trillion by 2030, up from approximately $200 billion today.

The offering's success hinges partly on demonstrating sustainable differentiation. BitGo emphasizes its "no asset lending" policy – contrasting with troubled lenders like Celsius – and touts its proprietary key recovery systems. Yet technological differentiation remains challenging as open-source solutions like Ethereum's account abstraction reduce dependency on centralized custodians.

BitGo's IPO represents a test case for specialized crypto infrastructure providers. If successful, it could catalyze public listings for similar firms while providing benchmarks for private valuations. The offering is expected to price in Q2 2026, contingent on SEC review and market conditions.