tl;dr
BitGo reported $12.6 million profit on $4.19 billion revenue in H1 2023, up from $30.9 million profit on $1.12 billion revenue in H1 2022. The revenue growth reflects expanding demand for crypto custody services amid institutional interest. Following a failed 2021 acquisition attempt, BitGo is prepa...
BitGo’s Surging Profits Signal Crypto’s Growing Legitimacy—And a Bold IPO Ahead
BitGo, one of the United States’ leading cryptocurrency custodians, is riding a wave of success that underscores the sector’s maturing appeal. For the first half of 2023, the company reported a profit of $12.6 million on revenue of $4.19 billion—a stark contrast to the $30.9 million profit it earned on $1.12 billion in revenue during the same period in 2022. While the profit dipped year-over-year, the revenue surge reflects a rapidly expanding market for crypto custody services, as institutions increasingly seek secure ways to hold digital assets.
The company’s growth comes amid a pivotal moment for the crypto industry. BitGo’s journey has been anything but smooth. In 2021, it nearly struck a deal to be acquired by Michael Novogratz’s Galaxy Digital, but the merger collapsed when BitGo failed to provide audited financial statements—a red flag that highlighted the challenges of scaling a crypto business under regulatory scrutiny. Today, however, BitGo is positioning itself as a cornerstone of the institutional crypto ecosystem.
As demand for secure storage solutions rises, BitGo’s role has become critical. Crypto custody isn’t just about safeguarding digital assets—it’s about building trust in a market still viewed by some as volatile and unregulated. With institutional investors pouring billions into cryptocurrencies, firms like BitGo are filling a vital gap, offering the kind of infrastructure that Wall Street once dismissed as niche.
Now, BitGo is taking the next step: going public. The company plans to list on the New York Stock Exchange under the ticker symbol **BTGO**, with Goldman Sachs and Citigroup serving as lead underwriters. The move signals growing confidence in crypto’s future, bolstered by the Trump administration’s recent pro-crypto rhetoric, which has sparked optimism across the sector.
Josef Schuster, CEO of IPO research firm IPOX, notes the shift in perception: “Investors are increasingly viewing digital assets as an asset class in their own right, rather than purely speculative instruments.” BitGo’s IPO could accelerate this trend, offering traditional investors a gateway to a market once seen as the domain of tech enthusiasts and risk-takers.
For now, BitGo’s numbers tell a story of resilience and adaptation. As it prepares to join the public markets, the company’s success may serve as a bellwether for the broader crypto industry’s quest for legitimacy—and a reminder that even in the wild world of digital assets, stability and trust are the new currency.