Reuters: IPOX® Associate Muehlbauer Comments on BitGo's $1.96 Billion IPO Target
According to a recent article by Reuters, crypto custody firm BitGo announced its target for a valuation of up to $1.96 billion in its upcoming U.S. IPO. The Palo Alto-based company plans to raise approximately $201 million by offering shares priced between $15 and $17. This move comes as the IPO market signals a recovery path for 2026, following the debuts of other crypto players like Circle and Bullish.
The article highlights a shift in investor sentiment, noting that while the sector faced turbulence in late 2025, there is a renewed "flight to quality" favoring established, regulated entities.
BitGo enters this environment with strengthened fundamentals, having executed a pivot to profitability last year. Additionally, the firm significantly enhanced its regulatory credibility by receiving OCC approval to operate as a federally chartered national trust bank, which might be a key differentiator for investors.
IPOX®’s Dr. Lukas Muehlbauer provided expert commentary on how these factors position BitGo within the current market landscape. He noted that the scrutiny on valuations has created a specific demand for defensive, regulated plays rather than speculative ventures.
"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."
Muehlbauer also highlighted the strategic timing of the offering relative to broader index performance:
"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."
Read the full article by Prakhar Srivastava on Reuters: Crypto firm BitGo eyes up to $1.96 billion valuation in US IPO
