BitGo is drawing attention on Wall Street as a possible acquisition target for traditional finance firms looking for a faster entry into crypto. Analysts argue the company’s value is no longer limited to custody. Its broader push into full-service institutional crypto finance is what could make it attractive to established financial players.
Compass Point analyst Ed Engel, who rates the stock a buy, said BitGo’s product set could appeal to firms that want to offer crypto products to clients without building the infrastructure from scratch. In his view, BitGo offers a full suite of services that could be integrated into traditional prime brokerage platforms, while new entrants could also acquire the company to deliver those capabilities directly.
Public listing put crypto infrastructure in front of equity investors
BitGo was one of the first digital asset firms to go public this year. The company is known for digital asset custody and security services, with an institutional client base at the center of its business. Its IPO also gave public equity investors one of the earlier direct ways to gain exposure to crypto infrastructure, placing BitGo in a position that some analysts describe as a bridge between traditional finance and digital assets.
Engel said investors may be paying too much attention to BitGo’s core custody business and not enough to what he called the company’s chance to cross-sell prime services. He compared that opportunity with prime brokerage operations at Galaxy (GLXY) and Coinbase (COIN), noting that Galaxy’s average revenue per trading counterparty is about 6 times BitGo’s. If BitGo scales those services, the gap suggests room for revenue expansion.
Another investment bank also highlighted takeover appeal
Canaccord Genuity made a similar point in its own note, saying BitGo’s competitive moat looks solid and that the company could serve as an attractive time-to-market asset for large TradFi firms seeking a quicker move into crypto. The bank assigned the stock a $15 price target and a buy rating.
There is precedent behind the takeover thesis. In May 2021, Galaxy Digital said it had agreed to acquire BitGo for $1.2 billion, but the transaction later fell apart after Galaxy said BitGo had failed to provide financial statements by a deadline at the end of July. With BitGo now public, analysts suggest that issue may no longer carry the same weight.