BitGo's $50M Buyback
BitGo Stock Jumps as Board Authorizes $50 Million Share Buyback Program
Anonymous
Key Points
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BitGo’s CFO Ed Reginelli said the buyback “represents an attractive use of capital at this time while allowing us to continue investing aggressively in our platform and clients,” framing the repurchase as both confidence and continued growth spending. (Direct quote.)
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The buyback announcement came roughly four months after BitGo’s IPO, which raised $212.8 million at a valuation “north of $2 billion,” according to reporting on the timing and proceeds.
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Retail sentiment on Stocktwits reportedly flipped after the announcement: sentiment moved from “bearish” to “bullish,” and chatter moved to “extremely high” from “high” over the prior day.
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Beyond custody/trading, BitGo is also tied to products and regulatory expansion efforts noted in coverage, including issuing the USD1 stablecoin (backed by World Liberty Financial) and promoting its BaFin-regulated platform in Germany ahead of an end-of-month MiCA licensing deadline.
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One analysis estimated that if BitGo uses the full $50 million buyback authorization at the then-current trading levels, it could repurchase up to about 9 million shares—adding detail on the potential share-count impact beyond the percentage-of-shares figure.
BitGo Holdings (NYSE: BTGO) surged as much as 20% on Wednesday after its board approved a $50 million share repurchase program, effective immediately with no expiration date. The buyback covers roughly 8% of the company's Class A shares outstanding, according to MarketWatch.
The rally offers a moment of relief for investors who have endured a brutal post-IPO slide. BTGO still trades around $6.07 — more than 65% below its January IPO price of $18, according to The Cryptonomist.
CFO Says Stock Is Trading Below Its True Value
BitGo CFO Ed Reginelli framed the buyback as a signal of conviction, not desperation. He said the program "represents an attractive use of capital at this time while allowing us to continue investing aggressively in our platform and clients." Management argues the current stock price sits well below the company's intrinsic — or fundamental — value.
At current trading levels near $5.50 to $6.00 per share, analysts estimate BitGo could repurchase up to 9 million shares if it uses the full $50 million authorization, according to KuCoin. The company plans to fund the buybacks with existing cash on hand. It can also buy shares through open-market purchases or privately negotiated deals, depending on market conditions.
A Stock That Has Fallen 65% Since Its January IPO
BitGo went public on the NYSE on January 21, 2026, raising $212.8 million at $18 per share. That priced the company at roughly $2.1 billion, according to Crypto Times. But shares fell steeply in the months that followed, bottoming near $5.44 amid weak appetite for crypto-linked stocks.
The slump reflects a broader investor shift away from digital assets and toward AI-related companies in early 2026, according to MarketWatch. Despite the stock's decline, BitGo's underlying business kept growing. The company reported $4.2 billion in first-half 2025 revenue — up 275% year over year — and now holds assets for more than 4,600 institutional clients across 1,400+ crypto assets.
Retail Traders Flip Bullish as Sentiment Spikes
The buyback news hit retail investors fast. Sentiment on Stocktwits flipped from "bearish" to "bullish" within 24 hours of the announcement, according to Stocktwits. Chatter on the platform jumped from "high" to "extremely high" as traders reacted to the news.
The reaction shows how starved investors have been for a positive signal from BTGO. The stock has spent most of its short public life trending downward. A $50 million buyback at a 65% discount to the IPO price — buying back shares at roughly a third of what institutional investors paid — is a hard argument to dismiss, according to Crypto Times.
BitGo Expands Into Stablecoins and European Regulation
The buyback comes as BitGo pushes into two high-stakes growth areas. The company serves as the exclusive custodian for USD1, a dollar-backed stablecoin issued by Trump-linked World Liberty Financial. USD1 surpassed $2 billion in circulation by mid-2025. BitGo acts as the key regulated intermediary behind the stablecoin's operations.
In Europe, BitGo is racing to capitalize on the EU's MiCA licensing deadline on July 1, 2026. As of May 2026, only 194 of more than 3,000 registered crypto firms had secured full MiCA authorization, according to MarketWatch. BitGo holds a BaFin license in Germany and is marketing its regulated platform to firms at risk of losing their operating status — positioning itself as the compliance backbone for a large slice of the European crypto market.
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