Mizuho Securities Initiates Coverage of BitGo with an "Outperform" Rating, Target Price Implies 70% Upside

BlockBeats News, February 18th: Despite BitGo's stock price falling on Tuesday, Mizuho Bank remained optimistic about the institutional-grade crypto custody platform in its maiden research report.

Mizuho Bank analysts Dan Dolev and Alexander Jenkins described BitGo as a "military-grade custodian," citing its long-term security track record and strategy focusing on institutional clients as a core strength in the increasingly competitive custody market. The report noted that over 80% of BitGo's revenue comes from recurring business such as custody and staking, rather than volatile trading activities, setting it apart among crypto infrastructure companies.

The analysts gave BitGo an "Outperform" rating and a $17 price target, implying nearly 70% upside from the current trading price of around $10.15.

Mizuho Bank expects that as stablecoins and the tokenization of real-world assets drive institutional adoption, the company's revenue growth will accelerate.

However, despite this, BitGo's stock price has dropped by around 44% since its New York Stock Exchange listing at $18 in January, reflecting the overall cautious sentiment in the market towards crypto-related stocks.