Corrects January 22 story to say BitGo received approval, not conditional approval to convert its state trust bank charter to a national charter in paragraph 11

By Atharva Singh and Arasu Kannagi Basil

Jan 22 (Reuters) - BitGo BTGO.N hit a $2.59 billion valuation after its stock opened 24.6% higher in their New York debut on Thursday, as investors snapped up shares in 2026's first crypto IPO.

The crypto custody firm's stock opened at $22.43 a share, above the $18 offer price.

BitGo and some of its backers sold 11.8 million shares above the marketed range of $15 and $17 to raise $212.8 million.

The listing comes as the crypto IPO window reopens following tepid activity after the U.S. government shutdown late last year. No major crypto-linked issuer went public in the U.S. in the fourth quarter.

"BitGo's IPO is the first major bellwether of the market’s appetite for crypto listings in 2026. While Gemini listed near the peak of the crypto market last year, BitGo is going public into the headwinds of the recent selloff," IPOX research associate Lukas Muehlbauer said.

A lighter regulatory approach under the Trump administration has boosted sentiment and encouraged several crypto-linked businesses to tap capital markets.

Crypto asset manager Grayscale and exchange Kraken are among the industry players seen as near-term IPO candidates.

The sector, however, remains volatile after a sharp selloff in the fourth quarter, raising the bar for companies looking to go public. Bitcoin fell 6.4% in 2025, marking its first annual loss since 2022.

"Marketing itself as a profitable and regulated "digital asset infrastructure company" instead of a pure token play, BitGo is positioned to be less prone to the day-to-day price movements of bitcoin," Muehlbauer said.

Founded in 2013, BitGo is one of the few profitable crypto firms, having reported a net income of $35.3 million in the first nine months of 2025.

Last month, BitGo received approval from a top U.S. banking regulator to convert its state trust bank charter to a national charter, allowing it to operate across the country.

(Reporting by Atharva Singh and Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid and Alan Barona)

((Atharva.Singh@thomsonreuters.com;))