Craig-Hallum has opened coverage on BitGo Holdings (NYSE:BTGO) assigning a Buy rating and establishing a $18.00 price objective, the research note said Monday. At current levels BitGo shares trade around $9.73, close to the company’s 52-week low of $9.66, giving Craig-Hallum’s target considerable upside from present market prices.
The firm frames BitGo as a full-scale, fully certified platform provider tailored to an industry transition - from a retail-dominated market toward one that is more institutional and sovereign-friendly. BitGo’s product stack spans custody services and extends to staking, lending, trading and prime brokerage functions, positioning the company to serve institutional workflows.
Craig-Hallum’s research highlights recent product launches that broaden BitGo’s addressable market. Notable additions include Stablecoin-as-a-Service and Crypto-as-a-Service, which the firm says tap into fast-growing segments of the digital-asset ecosystem. BitGo has also reported key customer wins and a sizable pipeline, according to the initiating coverage note.
Analysts cited by InvestingPro anticipate robust sales momentum, projecting approximately 75% revenue growth in the current year. That projection comes against a backdrop of very low gross profit margins; the company’s gross profit margin was reported at just 1.64%, a figure that Craig-Hallum and other market observers will likely scrutinize as BitGo scales.
In comparing market alternatives, Craig-Hallum noted that the public digital-asset landscape was long dominated by Coinbase, which the firm characterizes as more consumer-focused and relatively costly and friction-heavy. By contrast, Craig-Hallum views BitGo as building an institutional-friendly ecosystem that could benefit as demand for expanded services rises globally.
The initiating report also argues that as BitGo ascends the product stack - adding higher-margin services such as prime brokerage and expanded trading capabilities - the company could capture improved margins in parallel with a rapidly growing total addressable market cited by the analysts.
Other brokerages have recently begun coverage with generally positive views. Wedbush initiated with an Outperform rating and a $15.00 price target. Rosenblatt Securities started coverage with a Buy rating and a $17.00 target, emphasizing institutional custody and security services. Canaccord Genuity provided a Buy rating and a $15.00 target, calling out BitGo’s leadership in custody and its account insurance. Clear Street assigned a Buy rating with a $18.00 price target and flagged potential revenue growth and an earnings inflection. Compass Point also began coverage with a Buy rating and a $17.00 target, noting BitGo’s expansion into prime brokerage and the role of custody fees in revenue.
Collectively these initiations underline a wave of analyst optimism toward BitGo’s prospects, driven by the firm’s institutional positioning, product expansion and reported customer traction. Market participants will likely be watching the company’s ability to translate the growing pipeline into materially improved margins and sustainable revenue growth.
Key points
- Craig-Hallum starts coverage of BTGO with a Buy rating and a $18.00 price target, implying significant upside from the current $9.73 share price.
- BitGo is positioned as an institutional-focused platform offering custody, staking, lending, trading and prime brokerage, and has added Stablecoin-as-a-Service and Crypto-as-a-Service.
- Analysts expect roughly 75% sales growth this year despite very low gross profit margins of 1.64%.
Risks and uncertainties
- Extremely thin gross profit margins - reported at 1.64% - present a near-term profitability and scalability challenge for BitGo.
- Share price trading near the 52-week low of $9.66 reflects market skepticism and could limit investor confidence in the near term.
- BitGo’s investment case depends on a continued shift from retail to institutional and sovereign participation in digital assets; the pace and extent of that transition will affect outcomes.