Crypto custodian BitGo a potential acquisition target for Wall Street, analysts say

Wall Street analysts from Compass Point and Canaccord Genuity view crypto custodian BitGo as a prime acquisition target for traditional finance firms looking to enter or expand their crypto offerings. Analysts like Ed Engel of Compass Point suggest BitGo’s full suite of services, including prime brokerage potential, makes it ideal for integration into traditional prime brokers. Despite a weak post-IPO stock performance, dropping over 40% since its $18 IPO price, analysts defend the stock, noting that the market is overly focused on custody rather than cross-selling opportunities. Canaccord Genuity also sees BitGo as an attractive "time-to-market asset" for major traditional finance players. The stock's current market cap is near the valuation of a previously abandoned 2021 acquisition attempt by Galaxy Digital, but analysts maintain buy ratings, implying significant upside potential.

(Source：CoinDesk)