Investment Review №331. At zero

Investment potential

• Company Overview. The company’s original mission was to address cryptocurrency custody security risks. In 2013, BitGo launched the industry’s first multi-signature (multi-sig) Bitcoin wallet, which splits control over private keys between multiple independent parties. This technology became the foundation of BitGo’s service model, significantly reducing theft risk by requiring multiple signatures to authorize a transaction — for example, one key is held by BitGo and two by the client. As of today, BitGo supports over 1,400 digital assets, serves more than 4,600 institutional clients, and has about 1.1 million users. As of end-June 2025, assets on the platform totaled approximately $90.3 billion. Earlier this year, BitGo launched a global over-the-counter (OTC) trading platform for digital assets as part of its plan to go public — highlighting growing institutional demand for cryptocurrencies from hedge funds and asset managers. The OTC platform offers spot and options trading, as well as lending services to support margin trading.
• Market Opportunities. The market capitalization of digital assets exceeded $3 trillion as of June 30, 2025, representing only a small fraction of the combined global stock and bond market value of $131 trillion for the same period. According to company estimates as of January 2024, up to 10% of global GDP could be tokenized and stored on blockchain by 2027.
• Financials. Revenue growth was –63% in 2023, followed by a 233% rebound in 2024, and 273% growth for the first six months of 2025. The company’s EBIT margin improved from –3% in 2022 and –4% in 2023 to break-even (0%) in both 2024 and the first half of 2025, reflecting a transition toward profitability.