The buyback comes as newly listed crypto firms face a more challenging environment, with digital asset prices under pressure and investor attention shifting toward AI-driven stocks.
Shares of crypto infrastructure company BitGo (BTGO) surged up to 20% on Wednesday after it announced a $50 million share repurchase program aimed at stabilizing its stock, which has struggled since its market debut earlier this year.
The plan allows BitGo to repurchase up to $50 million in common shares—about 8% of its outstanding stock—through open-market transactions, privately negotiated deals, and block trades. The company said the program is effective immediately and carries no fixed end date.
Chief Financial Officer Ed Reginelli said the move reflects the board’s confidence in the company’s fundamentals and long-term outlook.
The rebound offers some relief following a steep decline. Despite Wednesday’s gains, BitGo shares are still down roughly 65% from their January IPO price on the New York Stock Exchange. The stock debuted at $18 and was recently trading near $6.07.
The decline mirrors a broader downturn in sentiment toward crypto-related equities. After last year’s wave of enthusiasm around crypto IPOs, bitcoin and the wider digital asset market have weakened, while investor focus has increasingly shifted to artificial intelligence firms and high-profile upcoming listings such as SpaceX.
Amid the volatile backdrop, several crypto companies, including Kraken and Consensys, have paused their IPO plans.
BitGo provides custody, trading, staking, and settlement services for digital assets, and also issues USD1, a U.S. dollar-backed stablecoin linked to the Trump family-backed World Liberty Financial project.
The company is also promoting its BaFin-regulated infrastructure platform in Germany as a solution for firms preparing to comply with the European Union’s MiCA framework ahead of a licensing deadline later this month.
