Stock Markets February 17, 2026

Analysts Turn Positive on BitGo, Citing Custody Scale and Institutional Demand

Mizuho and Citi begin coverage with bullish ratings, highlighting custody revenue, Go Network and a shift to broader institutional services

By Sofia Navarro
Analysts Turn Positive on BitGo, Citing Custody Scale and Institutional Demand

Brokerage analysts at Mizuho and Citi initiated coverage of BitGo with constructive ratings, pointing to the company's large custodial footprint, recurring revenue mix and an evolution from pure custody into a more comprehensive institutional platform. Both firms see demand from on-chain finance, tokenization and stablecoin activity supporting custody and settlement services, while one trimmed forecasts to reflect crypto price volatility.

Key Points

  • Mizuho and Citi initiated coverage with bullish ratings on BitGo, citing its role as a large institutional custodian and infrastructure provider.
  • BitGo reportedly safeguards over $100 billion in assets, with custody fees and staking comprising more than 80% of revenue - a mix the brokerages view as relatively stable.
  • Analysts see demand drivers in tokenization, regulated decentralized finance and stablecoins, and note BitGo’s platform capabilities such as the Go Network and multi-signature custody as competitive features. Sectors impacted include crypto infrastructure, institutional asset services and on-chain finance.

Two major brokerages have started public coverage of BitGo, the digital-asset custodian and infrastructure provider, assigning favorable investment stances and pointing to the company’s institutional positioning.

Mizuho opened coverage with an Outperform rating and a $17 price target. The firm emphasized BitGo’s scale in custody, its recurring revenue profile and its preparedness for increased institutional adoption. The brokerage noted that shares traded down about 5% in Tuesday trading.

In its analysis, Mizuho stated that BitGo safeguards in excess of $100 billion in client assets and has experienced steady client growth since early 2023. The brokerage argued that, as institutions move into digital assets, they are likely to choose established providers with demonstrable security records.

Mizuho highlighted that custody fees and staking services make up more than 80% of BitGo’s revenue, a mix the firm views as offering greater stability compared with firms whose income is more transaction-driven. Based on that revenue composition and anticipated market trends, Mizuho projects BitGo’s revenue will expand at roughly a 28% compound annual rate through 2027, a pace the firm describes as faster than the trajectory it expects for Coinbase.

The brokerage also pointed to BitGo’s proprietary Go Network, a platform that enables clients to trade and settle while assets remain in custody. Mizuho characterized the network as both a defensive moat and a potential source of asset growth. It further noted that BitGo’s regulatory permissions - including U.S. trust charters and a national trust bank structure - are supportive of scaling operations domestically and internationally.

Citi launched coverage with a Buy rating and set an $18 price target. The bank portrayed BitGo as a central infrastructure provider within on-chain finance, noting a strategic shift from pure custody toward a broader institutional platform integrating wallets, settlement and compliance capabilities.

Citi emphasized BitGo’s multi-signature custody architecture and its compliance framework as attractive features for institutions prioritizing risk controls. The bank anticipates that growth in tokenization, regulated decentralized finance and stablecoins will increase demand for custody and settlement offerings over time.

While Citi trimmed some financial assumptions to account for crypto price volatility, it still forecasts around 30% medium-term net revenue growth and expects profit margins to expand as the business scales.


The coverage from these brokerages frames BitGo as a participant at the intersection of custody services and broader institutional infrastructure, with both firms citing recurring revenue streams, platform capabilities and regulatory licenses as key elements underpinning their bullish views.

Risks

  • Crypto price volatility - Citi explicitly trimmed forecasts to reflect volatility in crypto prices, which can affect revenue and profitability assumptions for firms in the sector.
  • Near-term equity volatility - the stock was reported to be down about 5% in Tuesday trading, signaling market sensitivity that could affect investors’ returns.
  • Limited public detail on competitive dynamics - the article does not provide comprehensive information on how BitGo compares across all competitors or how market share might evolve, leaving uncertainty about competitive risk.

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