Crypto infrastructure provider BitGo’s (BTGO) shares jumped as much as 20% on Wednesday after the company announced a $50 million share buyback program to support a stock that has struggled since its public debut earlier this year.
The initiative allows the company to repurchase up to $50 million of its common stock, about 8% of outstanding shares, through open-market purchases, privately negotiated transactions and block trades. The company said the program takes effect immediately and has no fixed expiration date.
“This authorization reflects the Board’s confidence in our business and long-term trajectory,” Chief Financial Officer Ed Reginelli said in a statement.
The rally offered some relief for investors after a difficult stretch. Even after the early Wednesday gain, BitGo shares remain about 65% below their January debut on the New York Stock Exchange. The shares were priced at $18 in the IPO, and traded recently around $6.07.
The decline is a reflection of a broader slump in investor sentiment toward digital asset-linked stocks. After a wave of crypto IPO enthusiasm last year, bitcoin BTC$65,165.46 and cryptocurrency prices have tumbled, and attention has increasingly turned toward artificial intelligence (AI) companies and a pipeline of highly anticipated tech listings like SpaceX (SPCX).
Several crypto companies, including Kraken and Consensys, have halted their efforts amid turbulent crypto markets.
BitGo provides custody, trading, staking and settlement services for digital assets. It also issues USD1, the U.S. dollar stablecoin tied to the Trump family-backed World Liberty Financial project.
The firm has also been promoting its Germany’s BaFin-regulated infrastructure platform as an option for companies adapting to the European Union’s digital asset regime, MiCA, ahead of a licensing deadline at the end of the month.
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