BitGo (BTGO) Breaks Issue Price; Stock Halved From Debut Peak

The first crypto IPO of 2026 is underwater.

BitGo Holdings (BTGO) has turned its NYSE debut into a liquidation event. After pricing at $18 and touching an intraday high of $24.50 on January 22, the stock surrendered all gains, slicing through support levels to trade at $13.32 as of Tuesday morning. The reversal, a 45% collapse from last week’s peak, signals immediate institutional fatigue for pure-play infrastructure equity.

Volume confirmed the exit. While the initial float of 11.8 million shares saw rapid turnover on Day 1, buy-side demand evaporated once the price lost the $18 issuance floor. The $213 million raise, underwritten by Goldman Sachs and Citigroup, was positioned as a bellwether for a crypto IPO pipeline that includes potential listings from Kraken and Circle later this year. That narrative is now in jeopardy.

The market isn’t pricing in growth; it’s pricing in regulatory overhang.

The discrepancy is stark. While BitGo secured a $2.2 billion valuation at offering, the secondary market has repriced the custody giant closer to $1.5 billion in under five sessions. The sell-off correlates with a broader rotation out of high-beta fintech, but the severity of BTGO’s drop is idiosyncratic. Investors appear skeptical of custody-fee compression models in a market increasingly dominated by ETF issuers rather than direct holders.

The Technical Damage

BTGO failed to defend the $16.50 zone early Monday, accelerating the slide. With no historical support below the IPO price, the stock enters price discovery mode to the downside. Short interest data remains sparse due to the T+2 settlement cycle, but the velocity of the move suggests early backers may be hedging lock-up expiry risk well ahead of schedule.