From block to bell

Crypto is back at the block.

BitGo is kicking off the year’s IPO calendar. The crypto infrastructure firm, which operates everything from crypto wallets to trading and custody, opened at $22.43, 25.5% above the IPO price.

BitGo is valued at $2.59 billion after raising $212.8 million, and unlike many crypto peers, it’s profitable: The company expects 2025 net income of $3.16 million to $3.52 million, swinging from a $7 million loss in 2024, with revenue projected to surge from $2.4 billion in 2024 to $15.5 billion in 2025.

Crypto caught in the crossfire

The IPO arrives at an awkward time for crypto, with bitcoin trading below $90,000, nearly 30% off its October highs. Traders were hoping that regulatory clarity provided by the CLARITY Act, a proposal designed to set clearer rules for the crypto industry, could become a gateway to broader market adoption and help bitcoin recover. But those hopes faded after Coinbase pulled its backing, citing restrictions on stablecoin rewards.

Geopolitics aren’t helping, either. Headlines related to potential US tariff threats tied to Greenland and other global tensions have contributed to broader volatility in risk assets, including crypto. Investors have preferred to store their wealth in gold, which usually lags bitcoin’s growth but has recently rocketed to new heights.

“With the big run in precious metals, some investors are not focused as much on bitcoin as they used to be,” Chief Market Strategist at Miller Tabak + Co Matt Maley, told Bloomberg.

Amid this backdrop, US-listed bitcoin exchange-traded funds saw $700 million in outflows yesterday, the sharpest single-day drawdown in roughly two months.

The first domino

Despite those many headwinds, BitGo’s successful debut today may open the door for others. Crypto exchange Kraken filed for an IPO in November and is reportedly targeting a valuation near $20 billion.

The IPO pipeline isn’t limited to digital assets. Heavyweights like SpaceX, OpenAI, and Anthropic are among the most-watched private companies considering an IPO, while unicorn EquipmentShare plans to go public later this week.

Whether BitGo’s debut proves to be a bellwether or a bluff, it will help set the stage for the next crop of companies weighing whether the IPO window is truly reopening.—SY