BitGo Stock IPO Opens with Significant Gains, Then Plummets Dramatically

The wave of enthusiasm for the upcoming opening quickly turned into disappointment for BitGo investors. The initial public offering (IPO) of this leading crypto custodian created the first drama in the US equity market for the digital sector. Crypto influencer Bill Qian noted the turbulent momentum—indicating that market penetration for stock IPOs in the crypto industry still faces significant hurdles despite support from world-class underwriters.

IPO Surpasses Target with a Valuation of $2.08 Billion

BitGo’s IPO structure was designed with aggressive detail. The share price was set at $18, surpassing the initial benchmark range of $15–$17, with a fundraising target of $212.8 million. The company’s valuation at the time of the offering was estimated at around $2.08 billion. Goldman Sachs positioned itself as the lead underwriter for this IPO transaction, supported by Citigroup as co-underwriter. The limited offering structure—only 11.8 million shares available on the market—was designed to create scarcity and support share price stability in the early phase.

First Trading Day: Initial Jump Followed by Large-Scale Selling

The opening of BitGo’s IPO trading reflected the extreme volatility patterns often seen in crypto sector launches. Shares opened at $22.43, representing a 24.6% increase from the initial IPO price. Momentum continued to rise in the first hour, with the price jumping to $24.50—marking a 36.1% gain. However, this peak was short-lived. Around 10:30 AM, a wave of massive selling hit the market, triggering sustained selling pressure throughout the afternoon session. As a result, shares closed at $18.49, erasing 94% of the gains made during the day and practically returning to the initial offering price.

Continued Pressure on Day Two, Shares Drop Significantly

Negative momentum continued on the second trading day without support from recovery buying from Asian or European markets. Shares immediately faced selling pressure at the open and fell below the IPO level of $18 around 10:30 AM. The decline continued, reaching a low of $14.49—representing a 19.5% loss from the IPO price. The close on the second day was at $14.50, ending the session with a 19.4% decline and a strong bearish signal for early investors.

Volatility in BitGo’s shares demonstrates the challenging dynamics still faced by IPO launches in the crypto sector, contrasting with the relative success of other digital investment options like Circle’s performance. The market penetration challenges for stock IPOs in this segment reflect investor uncertainty about valuation and long-term momentum within the digital asset ecosystem.