Mizuho Trims BitGo Price Target But Sees Regulatory Delay as Hidden Advantage

Mizuho analysts cut their price target for crypto custodian BitGo Holding to $11 from $14, though they maintained a positive outlook on the stock. The revised target comes even as the firm continues to view BitGo as a strong, recurring-revenue business built on a growing customer base.

Regulatory Delay Could Favor BitGo

While many see delays to pending U.S. crypto market-structure legislation as a drag on the industry, Mizuho argues the opposite could be true for BitGo. The company already operates the first federally chartered digital asset trust bank owned by a public company, meaning its regulatory standing does not depend on new legislation passing. Analysts noted that as the broader legal framework remains unsettled, BitGo’s existing charter and compliance head start becomes more valuable, raising the bar for new competitors trying to enter the market.

Strong Revenue Growth, Narrowing Losses

BitGo reported total revenue of $4.33 billion in the second quarter, up nearly 80% year over year. The company posted a net loss of $19 million, a notable improvement from the prior quarter’s larger loss. Its customer base grew 27% year over year, and subscription and services revenue increased quarter over quarter. Analysts also pointed to BitGo’s partnerships supporting tokenized securities infrastructure as a potential long-term growth driver.