BitGo shares jump 20% after company unveils $50 million buyback
The crypto custodian's shares remain 65% below their IPO price, prompting a major buyback to shore up confidence.
BitGo shares jumped as much as 20% on Wednesday after the digital asset infrastructure company authorized a $50 million share repurchase program, offering some relief for a stock that remains sharply below its public debut earlier this year.
The company said the buyback allows it to repurchase up to $50 million of common stock, equal to about 8% of its Class A shares outstanding based on current prices. The authorization takes effect immediately and has no fixed expiration date.
The rally comes after a difficult stretch for BitGo in public markets. Even after Wednesday’s move, the stock remains about 65% below its January debut on the New York Stock Exchange. BitGo priced its IPO at $18 per share and recently traded near $6.15.
BitGo said its board believes the company’s fundamental value exceeds its current market price, framing the buyback as a signal of confidence and a disciplined use of capital.
“This authorization reflects the Board’s confidence in our business and long term trajectory,” BitGo CFO Ed Reginelli said. “We believe that repurchasing our shares represents an attractive use of capital at this time while allowing us to continue investing aggressively in our platform and clients.”
The decline reflects a broader pullback in investor appetite for digital asset linked stocks. After a wave of crypto IPO enthusiasm last year, bitcoin and broader crypto markets have weakened, while attention has shifted toward artificial intelligence companies and major tech listings such as SpaceX.
Several crypto firms, including Kraken and Consensys, have also paused listing efforts amid turbulent market conditions.
BitGo provides custody, trading, staking and settlement services for digital assets. The company also issues USD1, the US dollar stablecoin tied to the Trump family backed World Liberty Financial project.
The firm has also been promoting its BaFin regulated infrastructure platform in Germany as an option for companies adapting to the European Union’s MiCA regime ahead of a licensing deadline at the end of the month.
BitGo said repurchases may be made through open market purchases, privately negotiated transactions, block trades or other methods. The company expects to fund the program with existing cash and cash equivalents and said it does not expect the buyback to affect the capital positions of its regulated subsidiaries.