BitGo volatility widens after first-day IPO surge…shares fall below offer price on second day of trading
Summary
- BitGo said volatility widened as it fell below its IPO offer price of $18 on the second day of trading after rising about 25% on its first day of listing.
- BitGo said it provides crypto-asset custody and infrastructure services, backed by an approximately $2 billion valuation based on the IPO price and more than $90 billion in assets under custody.
- Despite Ledger’s review of a listing targeting a valuation of more than $4 billion and Kraken’s $800 million raise at a $20 billion valuation, experts said the IPO market is in a phase that emphasizes fundamentals amid underperformance versus the S&P 500 and weakness among mid-sized IPOs.
Crypto-asset custody firm BitGo surged immediately after listing on U.S. markets, but volatility has widened as the stock fell below its IPO price on the second day of trading. Optimism that formed on the first day of listing quickly cooled, unsettling investor sentiment.
According to Cointelegraph on the 23rd (local time), BitGo began trading on the New York Stock Exchange (NYSE) on the 22nd. The company set its IPO price at $18 per share, and the stock rose about 25% intraday on its first day, reflecting strong initial demand. The rally, however, failed to carry into the next session.
On the 23rd, BitGo shares turned lower and slipped below the offer price. Yahoo Finance data showed the stock was down as much as 13.4% from the IPO price at one point during the session. Profit-taking soon after the listing, along with the limited free float typical of newly listed stocks, was cited as factors amplifying volatility.
BitGo was valued at about $2 billion based on the IPO price. The company provides crypto-asset custody and infrastructure services and said it currently safeguards more than $90 billion in assets on its platform. BitGo formalized its IPO plan by submitting listing-related documents to the U.S. Securities and Exchange Commission (SEC) in September 2025.
Despite market volatility, crypto companies continue to pursue listings. The Financial Times reported that hardware wallet maker Ledger is reviewing a U.S. listing with a target valuation of more than $4 billion. Crypto exchange Kraken recently raised $800 million at a $20 billion valuation, fueling speculation about a potential IPO.
Recent IPO performances, however, have been mixed. According to Bloomberg tallies, shares of companies that listed in 2025 generally underperformed the Standard & Poor’s (S&P) 500, with mid-sized IPOs in particular lagging. Experts say the IPO market is entering a phase that places greater emphasis on fundamentals than short-term expectations.
YM Lee
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