Goldman Sachs has opened formal coverage of BitGo Holdings (NYSE: BTGO), assigning the crypto custodian and infrastructure provider a Neutral rating and establishing a $11.50 price target. That target implies approximately 10% upside from the stock's then-current level of $10.76.
In its valuation work, Goldman Sachs relied on a multiple of 35.5 times Q5-Q8 adjusted EBITDA to arrive at the $11.50 target. The firm also notes traditional equity metrics: BitGo trades at a price-to-earnings ratio of 14.04 and the company has delivered positive net income over the trailing twelve-month period.
Goldman analyst James Yaro characterized BitGo as a rapid-growth crypto infrastructure business that is leveraging its established custody franchise to expand into adjacent offerings, including staking, prime brokerage and stablecoin-as-a-service. Those initiatives form the core of the bank's constructive view on BitGo's long-term positioning within digital asset infrastructure.
At the same time, the firm emphasizes several near-term and structural concerns that temper its overall recommendation. Goldman highlighted cyclical headwinds to revenue in the nearer term and flagged that BitGo has relatively greater revenue and earnings volatility compared with peers - a dynamic it attributes to the company's asset mix and exposure to more volatile cryptocurrencies.
Supporting that caution, InvestingPro data cited alongside the coverage shows the stock typically exhibits high price volatility. The data note that BitGo's shares have fallen 41.81% over the preceding six months and that the market capitalization stood at $1.24 billion. InvestingPro also reports the shares are trading above their assessed Fair Value.
Goldman also points to potential pricing pressure within custody and related services, meaningful sensitivity of the business to changes in interest rates as rates decline, and execution risk tied to scaling stablecoin-related products within a competitive market.
Additional financial metrics presented in third-party data underscore some of the bank's reservations: InvestingPro records a weak gross profit margin of 1.64% for BitGo and assigns the company an overall financial health rating of WEAK.
In separate operational milestones noted in the same reporting, BitGo has recently completed several regulatory and market steps intended to broaden its institutional footprint. The company became the first publicly traded firm to receive a federal charter, completed an initial public offering and began trading on the New York Stock Exchange under the ticker BTGO on January 22, 2026, after receiving final approval from the Office of the Comptroller of the Currency to operate as a national trust bank. Company leadership marked the listing by ringing the NYSE Opening Bell.
The reporting also references a partnership between InvestiFi and BitGo Bank & Trust to provide digital asset trading capabilities to financial institutions across the United States. Under that arrangement, account holders at participating banks and credit unions will be able to trade digital assets directly from their existing InvestiFi accounts. These developments were presented as evidence of BitGo's expanding presence in the digital asset industry.
Key points
- Goldman Sachs initiated coverage of BitGo with a Neutral rating and a $11.50 price target, based on 35.5x Q5-Q8 adjusted EBITDA and implying about 10% upside from $10.76.
- Analyst view balances BitGo's fast-growing crypto infrastructure franchise and expansion into staking, prime brokerage and stablecoin services against near-term cyclical revenue pressures and elevated earnings volatility.
- Third-party data cited in coverage shows high share-price volatility, a 41.81% six-month decline, a market cap of $1.24 billion, weak gross margins of 1.64% and an overall financial health rating of WEAK - factors that influence investor and credit market perceptions.
Risks and uncertainties
- Revenue and earnings volatility tied to asset mix and exposure to higher-volatility cryptocurrencies could affect market sentiment and comparability with peers - impacting the crypto and financial services sectors.
- Pricing pressure in custody and related services, along with execution risk in scaling stablecoin offerings in a competitive market, creates uncertainty for BitGo's revenue trajectory - relevant to fintech and payments markets.
- Meaningful sensitivity to interest rate movements as rates fall may influence earnings and valuation - a factor that crosses broader capital markets and banking sectors.