BitGo shares jumped as much as 20% on Wednesday after the digital asset infrastructure company authorized a $50 million share repurchase program, offering some relief for a stock that remains sharply below its public debut earlier this year.
The company said the buyback allows it to repurchase up to $50 million of common stock, equal to about 8% of its Class A shares outstanding based on current prices. The authorization takes effect immediately and has no fixed expiration date.
The rally comes after a difficult stretch for BitGo in public markets. Even after Wednesday’s move, the stock remains about 65% below its January debut on the New York Stock Exchange. BitGo priced its IPO at $18 per share and recently traded near $6.15.
BitGo said its board believes the company’s fundamental value exceeds its current market price, framing the buyback as a signal of confidence and a disciplined use of capital.
“This authorization reflects the Board’s confidence in our business and long term trajectory,” BitGo CFO Ed Reginelli said. “We believe that repurchasing our shares represents an attractive use of capital at this time while allowing us to continue investing aggressively in our platform and clients.”
