Mizuho lowered its price target for crypto custody company BitGo to $11 from $14 while keeping an "outperform" rating, according to an Odaily report. BitGo shares were trading at about $5.61 when the note was released. The bank’s view stands out because it argues that delays to the U.S. market structure bill known as the Clarity Act, widely seen by the market as a negative for the sector, may actually strengthen BitGo’s position.
Mizuho said BitGo already operates the first federally chartered digital asset trust bank owned by a public company, which means its regulatory standing does not depend on passage of the new legislation. In the firm’s view, the longer the U.S. regulatory framework remains unsettled, the more value BitGo can extract from its existing licenses and compliance lead. The report added that the Clarity Act is designed to establish a market structure framework for digital assets in the United States and define the division of authority among regulators, but repeated negotiations on key issues have kept the bill from moving forward. That delay, Mizuho said, could raise barriers for new entrants and make BitGo’s status as a licensed and trusted operator more valuable.
Mizuho cut its price target for crypto custody company BitGo to $11 from $14, while keeping an "outperform" rating, according to Odaily. BitGo shares were trading at about $5.61 when the report was published.
Delay in Clarity Act seen as a possible advantage
Mizuho said the market broadly views delays to the U.S. crypto market structure bill, the Clarity Act, as a negative. For BitGo, though, the bank said the delay may work in the company’s favor. BitGo already operates the first federally chartered digital asset trust bank owned by a public company, so its regulatory position does not hinge on the bill becoming law.
Existing licenses may widen BitGo’s lead
The analysts said the Clarity Act is meant to build a market structure framework for digital assets in the United States and spell out how authority is divided among different regulators. But negotiations over key issues have repeatedly stalled, keeping the bill delayed. In Mizuho’s view, each additional quarter of regulatory uncertainty gives BitGo more time to build on its licensing and compliance head start, while also making entry harder for newcomers. Put simply, the later a formal framework arrives, the more BitGo’s "trusted and already licensed" status could become a core competitive strength.
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