BitGo stock declines despite Mizuho rating it outperform

BitGo stock declined on Tuesday after Mizuho initiated coverage with an outperform rating and a target price of $17. The analyst team believes that BitGo’s digital asset custody platform serving institutions is well positioned to benefit from the increasing demand for regulated crypto infrastructure.

Mizuho estimates that recurring revenue from custody and staking services will help BitGo maintain more stable profits compared to crypto companies heavily reliant on trading volume during market downturns. Over 80% of BitGo’s revenue comes from custody and staking, rather than volatile trading activities.

Analysts also believe that expanding stablecoin issuance and tokenized assets could drive sustainable growth in the amount of assets stored on the BitGo platform over the next few years. The company currently protects over $100 billion in client assets.

However, BitGo’s stock is trading around $10.15, approximately 44% below its $18 IPO price on the New York Stock Exchange, amid overall weakness in crypto-related stocks and increasing competition in the custody sector.