BitGo emerges as a prime takeover target as Wall Street eyes crypto infrastructure Wall Street analysts say BitGo’s evolution from institutional custodian to full-service crypto infrastructure provider has positioned the company as an attractive acquisition target for traditional finance players eager to fast-track into digital assets. Why buyers would be interested Compass Point analyst Ed Engel — who carries a buy rating on BitGo — argues the firm’s broad suite of services could be easily folded into the operations of established prime brokers. “We ... view BTGO as an ideal M&A target for Wall Street companies expanding into crypto. BitGo offers a full suite of services that could be integrated into traditional prime brokers and new entrants could acquire BitGo to provide these solutions to clients,” Engel wrote, highlighting the firm’s ability to move beyond custody into prime services and cross-selling opportunities. Engel pointed out that investors may be underestimating BitGo’s upside by focusing narrowly on its custody business. He compared BitGo’s prime ambitions to the prime brokerage offerings at Galaxy and Coinbase, noting that Galaxy’s average revenue per trading counterparty is roughly six times BitGo’s — a gap that, if closed, could materially boost BitGo’s revenue profile. Other analysts agree Canaccord Genuity echoed the acquisition narrative, calling BitGo a “time-to-market asset” for major traditional finance players that want rapid entry into crypto. That firm has a buy rating and a $15 price target on the stock, saying recent share weakness looks like an overreaction given the company’s strategic position. A history of acquisition interest BitGo’s M&A potential is not just theoretical. In May 2021 Galaxy Digital agreed to buy BitGo for $1.2 billion, though the deal later collapsed after Galaxy said BitGo failed to meet a financial reporting deadline. Now that BitGo is public, some of those previous transaction frictions may be less relevant. Market performance and valuation BitGo was one of the first digital-asset infrastructure firms to list this year, aiming to give institutional investors direct exposure to crypto infrastructure. The IPO priced at $18 per share in January, valuing the company around $2 billion. Since then the stock has fallen more than 40% and is trading near $10.26, putting BitGo’s market capitalization at about $1.24 billion — closer to the valuation discussed in the failed Galaxy transaction. Broader market context Market moves have been influenced by the wider crypto selloff: bitcoin (BTC) has declined roughly 24% year-to-date, Galaxy’s stock is down around 9%, and Coinbase has fallen nearly 30%. Analyst coverage and upside potential FactSet shows 10 analysts covering BitGo: nine rate it a buy and one a hold. Price targets range from $12 to $18, implying potential upside of roughly 17% to 75% from current levels. Bottom line Analysts see two main reasons BitGo could draw buyers: its institutional custody moat and the strategic value of its growing prime services and infrastructure — capabilities that could help traditional financial firms speed their entry into crypto without building from scratch. With public reporting in place and a depressed share price, BitGo may be nearer-term M&A fodder than at any point since the failed 2021 deal. Read more: Crypto M&A Heats Up as Big Banks and Fintechs Race to Scale. Read more AI-generated news on: undefined/news

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