Mizuho sees BitGo upsides, calling custodian “military-grade” despite 44% post-IPO slump
Mizuho initiated coverage of crypto custodian BitGo with an "outperform" rating and $17 target despite its 44% post-IPO stock decline.Summary
Mizuho initiated coverage of crypto custodian BitGo (BTGO) with an "outperform" rating and a $17 price target, suggesting nearly 70% upside from current trading levels, even though the stock is down about 44% from its January IPO price.
Mizuho analysts described BitGo as a "military-grade custodian," highlighting its long security track record and focus on institutional clients as key advantages. They noted that over 80% of BitGo's revenue is recurring, derived from custody and staking services rather than volatile transaction activity, positioning it well for expanding institutional digital asset adoption.
Despite the positive outlook, BitGo shares have struggled since their volatile NYSE debut. Mizuho acknowledged risks, including general crypto market volatility and increasing competition from both crypto-native and traditional financial institutions entering the custody space.
(Source：The Block)