BitGo prepares for IPO: step toward crypto market maturity or test for investors

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BitGo files for IPO: milestone for crypto or investor test

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Oleg Tkachenko

23.09.2025

BitGo prepares for IPO: step toward crypto market maturity or test for investors — BitGo files for IPO: milestone for crypto or investor test

Crypto custody company BitGo, managing $90 billion in assets, has filed for an IPO. Its debut on the New York Stock Exchange promises to be a turning point for the crypto industry. The main intrigue is whether this event will add transparency and trust to the market, or whether it will become a test of resilience.

It is symbolic that under the ticker BTGO the company will be brought to market by Goldman Sachs and Citi. If previously investment banks’ involvement in such initiatives was limited to cautious consulting or experimental products, their role is now becoming much more active. This factor strengthens the impression that the crypto industry is finally integrating into mainstream finance.

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Financials: rapid growth, but shrinking margins

The figures disclosed in the S-1 filing offer plenty of material for analysis. BitGo’s revenue in the first half of the year nearly quadrupled — from $1.1 billion to $4.2 billion. At first glance, this looks like an impressive success and reflects strong demand for the company’s custodial services. Such growth indicates that BitGo has managed to secure its position as one of the key players in the infrastructure segment of the crypto market, capable of attracting clients even amid unstable regulation and high competition.

However, behind the revenue surge lie worrying details: net income for the same period dropped by more than half — from $30.9 million to $12.6 million, pointing to declining profitability. This may suggest that business expansion is accompanied by a steep rise in financial burdens. Among the most costly areas are compliance with new regulatory requirements, legal support, cybersecurity, technology infrastructure, and risk management.

Such costs are a natural stage for a company transitioning from a startup to a systemic player with a global client base. Yet this very dynamic will be under close scrutiny from investors after the IPO: they will want to know whether BitGo can maintain growth rates without further erosion of profitability, or whether the company will become a hostage to its own ambitions and external demands. Ultimately, the question of how resilient BitGo’s business model is will be one of the key factors in evaluating its stock.

The question of control and “controlled company” status

The ownership structure is sparking debate. CEO Mike Belshe will retain a controlling stake through Class B shares, each carrying 15 votes. Formally, this makes BitGo a “controlled company” under NYSE rules, although management has stated it does not intend to use the privileges associated with that status.

Such mechanisms are not new — tech giants like Meta and Alphabet use them so that founders can maintain control over their projects. But in the crypto industry, where trust in management is particularly sensitive, this could draw criticism.

“When we talk about public companies, transparency and accountability to shareholders must come first,” Warren Buffett noted in one of his columns.

Crypto firms go public

BitGo is not the first crypto company to pursue an IPO. In 2025, Circle, Figure, Bullish, Gemini all went public in the U.S., while Kraken has openly announced similar plans. Taken together, this looks like a wave of public listings turning crypto firms into familiar players on the American stock market.

This can be interpreted in two ways. On one hand, public status truly builds trust — IPOs come with due diligence, disclosure, and SEC oversight. On the other hand, past experience shows that public crypto companies like Coinbase become subject to much closer scrutiny by both regulators and investors. Their reports expose vulnerabilities in the industry, while their stock performance becomes a barometer of sentiment in the crypto world.

Why does BitGo want to go public?

For BitGo, going public is not only a way to raise capital but also an opportunity to strengthen trust in its business model. Public status automatically entails stricter disclosure requirements and regulatory oversight, making the company more transparent in the eyes of clients and partners.

Co-founder and CEO Mike Belshe noted back in February:

“An IPO helps crypto firms build trust in digital assets.”

According to him, SEC oversight and due diligence processes create a foundation for long-term stability and reputational reliability.

At the same time, going public carries not only advantages but also risks. In addition to gaining access to relatively cheap capital, the company will face constant scrutiny from investors and analysts, turning every fluctuation in results into pressure on management. Regular quarterly reporting, dependence on market conditions, and shareholders’ expectations of continuous growth could become a serious challenge. For a crypto custodian whose core value lies in trust and stability, such a “survival race” could become a source of vulnerability.

Symbol of maturity or a stress test?

The BitGo IPO is both a symbol of industry maturity and a test of its resilience. If the offering is successful, it will open doors for other companies and demonstrate that the crypto industry can play by the rules of the public market. But if BitGo’s stock faces volatility or its business model raises doubts, it will be a troubling sign that integration into the mainstream will be a long and painful process.

BitGo’s IPO should not be seen as a routine event. It is a crucial test for the entire crypto sector: can a business built on trust in digital assets withstand the pressures of the public market? For some, this is a step toward maturity and institutionalization. For others, it is a risk that the crypto industry is prematurely trying on a suit tailored for the old world of finance.

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