Crypto firm BitGo eyes up to $1.96 billion valuation in US IPO

By Prakhar Srivastava

Jan 12 (Reuters) - Crypto custody startup BitGo said on Monday it was targeting a valuation of up to $1.96 billion in its U.S. initial public offering, seeking to tap into the investor appetite for crypto firms.

The Palo Alto, California-based firm and some of its existing shareholders aim to raise as much as $201 million by offering 11.8 million shares priced between $15 and $17 each.

The IPO market is expected to continue on its recovery path this year, building on the momentum started in 2025, despite facing challenges such as tariff-driven volatility, a prolonged government shutdown and a late-year selloff in AI stocks.

More crypto firms plan to go public, including crypto exchange Kraken, after stablecoin issuer Circle CRCL.N and crypto exchange Bullish BLSH.N made their blowout stock market debuts last year.

The sector, however, has faced turbulence following a sharp crypto selloff in October, raising the bar for companies seeking investor support.

Recent pressure on AI and tech valuations has sharpened investor scrutiny across risk assets, prompting a "flight to quality" that favors regulated companies over more speculative crypto ventures, positioning BitGo as a more defensive play within the sector, said Lukas Muehlbauer, IPOX research analyst.

However, "the company aims to capitalize on the early 2026 market momentum, where small and mid-cap index outperformance has created a favorable window for mid-sized offerings like BitGo," added Muehlbauer.

Founded in 2013, BitGo is one of the largest crypto custody firms in the United States. It stores and protects digital assets for clients, a role that has gained importance as institutional interest in crypto grows.

Goldman Sachs and Citigroup are the lead underwriters for the offering.

BitGo intends to list on the New York Stock Exchange under the symbol "BTGO".