Altcoins News

Story: BitGo Stock Plunges as Banks Eye Crypto Custody Takeover

By Evie Vavasseur

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BitGo's stock keeps falling. The digital asset custody firm dropped nearly 40% since its IPO last year, and now Wall Street thinks someone's going to buy them out before things…

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JP Morgan analysts flagged BitGo as a prime takeover target on February 17, pointing to the company's solid infrastructure and how it could fit into traditional banking.

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BitGo pulled in $200 million revenue last year, up 15% from 2024. But they also lost $45 million, which has analysts wondering if they can make it alone in this market.

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Goldman Sachs jumped in on February 16 with their own take. They think BitGo's multi-signature tech could be exactly what banks need to beef up their digital security.

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The company just extended its deal with Coinbase on February 10. They're working together on better custody services for institutional clients, which could make BitGo look even…

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Stock closed at $17.50 on February 18. That's a slight bounce from recent lows, but still way down from where it started.

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Banks want in on crypto, that's clear. Buying BitGo would give them instant access to the infrastructure and client base they need. The regulatory stuff's messy though.

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BitGo's trying to expand into Europe and Asia, which might make them worth more to potential buyers. International reach matters when you're talking about digital assets.

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No formal offers are public yet. BitGo isn't talking about who might be interested or what kind of price they'd consider.

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Trading activity stays high as investors bet on a takeover. Some think it's inevitable given BitGo's financial situation and the interest from traditional banks.

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Anchorage's funding round shows there's still investor appetite for custody services. But it also means BitGo faces stronger competition just when they need to prove their value.

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February's been busy for BitGo watchers. Between analyst reports and partnership announcements, something's clearly building toward a decision point.

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The custody sector's consolidation wave makes BitGo's situation even more precarious. Fireblocks raised $550 million in Series E funding last September, while Hex Trust got…

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Traditional banks have been quietly building their crypto capabilities for months. Bank of America filed three blockchain-related patents in January, while Wells Fargo expanded…

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