Summary
- BitGo opened at $22.43, up 25% from its IPO price on its first day on the New York Stock Exchange, and was reported to have surged as much as 36%.
- BitGo’s market capitalization based on the closing price was valued at about $2.1 billion, and heavy demand during institutional bookbuilding led to the IPO price being set at $18.
- BitGo is among the few crypto companies that are profitable, reporting $35.3 million in net income from January to September last year and revenue of $4.19 billion.
Crypto infrastructure company BitGo got off to a solid start on its first day of trading on the New York Stock Exchange (NYSE), opening 25% above its IPO price.
On the 22nd (local time), BitGo began trading at $22.43, up 25% from its IPO price of $18. The stock at one point surged as much as 36% to $24.5 intraday, but later gave back gains to close at $18.49. Based on the closing price, BitGo’s market capitalization is valued at about $2.1 billion.
BitGo drew attention as the first major crypto company to pursue an initial public offering (IPO) this year. The company initially set an indicative price range of $15 to $17, but strong institutional demand during bookbuilding led to the final IPO price being set at $18. The Wall Street Journal (WSJ) said, “BitGo’s IPO offers a gauge of whether the crypto industry has entered a recovery phase after investor sentiment froze following the decline in crypto prices late last year.” There were no listings by major crypto companies in the fourth quarter of last year.
According to Reuters, BitGo is one of the few crypto companies to be profitable. It posted net income of $35.3 million from January to September last year. Revenue in the first half of last year surged to $4.19 billion, nearly quadrupling from the prior year’s $1.12 billion.
BitGo was founded in 2013 by Silicon Valley entrepreneur Mike Belshe. Belshe is credited with being the first to commercialize “multisignature wallet” technology, which requires multiple signatures to approve transactions. On the back of this security technology, BitGo initially grew around custody services for institutional clients, then expanded into brokerage and institutional trading services. It is also the custodian and an infrastructure provider for the stablecoin “USD1” of “World Liberty Financial,” led by the family of U.S. President Donald Trump.
Reporter: Han Kyung-je
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
