BitGo, a prominent U.S.-based cryptocurrency custodian, has announced its intention to become a publicly traded company through an initial public offering (IPO) potentially as early as the second quarter of 2025.
This move comes after the company's valuation reached $1.75 billion during its Series C funding round in August 2023, where it raised $100 million for acquisitions.
The funding round was notable as it occurred during a period when venture funding was scarce, largely due to a credit contagion effect from the previous year's bear market. Despite these conditions, BitGo's funding round was only slightly lower than previous valuations, a scenario often referred to as a "downround."
This capital raise marked the first time BitGo had secured funding since 2017. In that year, the company completed a $42.5 million Series B round, with Valor Equity Partners leading the investment and participation from David Sacks, a former PayPal (NASDAQ:PYPL) COO who later became known as the U.S. "Crypto Czar."
BitGo's journey toward going public has not been without its challenges. In 2021, the company was on track to be acquired by Galaxy Digital (TSX:GLXY) and go public through that transaction. However, the deal, which would have valued BitGo at $1.2 billion, was called off in August 2022. Galaxy Digital cited BitGo's "failure to deliver" audited financial statements as the reason for the termination.
The announcement of BitGo's planned IPO is a significant development in the cryptocurrency industry, signaling confidence in the future of digital asset custodianship. As more details become available, updates on BitGo's path to going public will be provided.
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