BitGo Jumps on $50M Buyback Despite Shares Trading Far Below IPO

The buyback comes at a time when newly listed crypto firms are navigating a more challenging market, as digital asset prices remain weak and investor focus shifts toward artificial intelligence stocks.

Shares of crypto infrastructure firm BitGo (BTGO) surged as much as 20% on Wednesday after the company unveiled a $50 million share repurchase program aimed at supporting its underperforming stock since going public earlier this year.

The program allows BitGo to buy back up to $50 million worth of its common shares—approximately 8% of those outstanding—through open-market purchases, privately negotiated deals, and block trades. The company stated that the program is effective immediately and does not have a set expiration date.

Chief Financial Officer Ed Reginelli said the move signals the board’s confidence in the company’s fundamentals and long-term growth outlook.

The rebound offered some relief to investors following a prolonged downturn. Despite Wednesday’s gains, BitGo shares remain roughly 65% below their January listing price on the New York Stock Exchange. The stock debuted at $18 per share and was recently trading near $6.07.

The drop reflects a broader cooling in sentiment toward crypto-related equities. After strong enthusiasm around crypto IPOs last year, both bitcoin and the wider digital asset market have declined, while investor attention has increasingly shifted toward AI-focused companies and upcoming high-profile tech listings such as SpaceX.

Amid the volatile market backdrop, several crypto firms, including Kraken and Consensys, have paused their IPO plans.

BitGo offers a range of services including custody, trading, staking, and settlement for digital assets. It also issues USD1, a U.S. dollar-backed stablecoin associated with the Trump family-supported World Liberty Financial initiative.

Additionally, the company has been highlighting its BaFin-regulated infrastructure platform in Germany as a solution for firms preparing to comply with the European Union’s MiCA framework ahead of an upcoming licensing deadline later this month.