BitGo Weighs Initial Public Offering as Cryptocurrency Sector Grows

Company Consideration of IPO

BitGo, a prominent provider of cryptocurrency custodian services, is reportedly contemplating an initial public offering (IPO) that could take place in the latter half of this year. According to a Bloomberg report published on February 11, 2024, the firm is currently in discussions with potential advisers about the listing, although no definitive decision has been reached. When reached for comment, BitGo declined to provide further details on the matter.

Company Valuation and Background

Founded in 2013, BitGo has established itself as one of the leading crypto custody firms based in the United States. The company achieved a valuation of $1.75 billion following a $100 million funding round from investors in 2023. BitGo now serves over 1,500 institutional clients across more than 50 countries and is responsible for processing approximately 8% of all global Bitcoin transactions by value.

Expansion into Retail Markets

In December 2023, BitGo launched a dedicated retail platform aimed at providing retail customers with access to its suite of digital asset services, which includes trading, staking, wallets, and qualified custody services. CEO Mike Belshe emphasized the company’s commitment to delivering the same high-quality, “white-glove, crypto-native solutions” that BitGo has historically offered to institutional clients. He stated, “Retail investors need a security-first, crypto-native platform, and we are excited to serve as that trusted partner. We look forward to enhancing the retail investing, trading, storage, and staking experience for investors around the world.”

Regional Expansion in Asia-Pacific

In November 2023, BitGo further expanded its footprint with the official launch of BitGo Singapore. This subsidiary is set to provide comprehensive digital asset services to the Asia-Pacific region, following the company’s acquisition of a Major Payment Institution License from the Monetary Authority of Singapore a few months earlier.

Broader Trends in the Cryptocurrency Sector

The discussions surrounding BitGo’s potential IPO come in the wake of similar considerations by other well-known companies in the cryptocurrency sector. Reports surfaced earlier this month indicating that cryptocurrency exchange Gemini and crypto operator Bullish Global are also exploring IPO opportunities this year. Additionally, in January, Kraken co-CEO Arjun Sethi revealed that the exchange’s revenue had surged from $671 million in 2023 to approximately $1.5 billion in 2024. Sethi mentioned that Kraken plans to issue quarterly reports, paving the way for future IPO considerations.

As the cryptocurrency market continues to mature and attract institutional investment, firms like BitGo are positioning themselves to capitalize on growing investor interest, both in the retail and institutional segments.