- BitGo stock price has crashed to a record low this year.
- The company published strong financial results, which showed that its revenue growth accelerated.
- The stock will likely remain under pressure for a while before rebounding.
BitGo stock price has crashed to a record low, moving from a high of $24.50 after its initial public offering (IPO) to the current $7.66. Its market capitalization has slumped to over $838 million. So, is it safe to buy the dip or will the sell-off continue?
BitGo Stock Price Crashed Despite the Soaring Revenue
BitGo is a top player in the crypto industry, where it offers several solutions, including custody, prime brokerage, settlement, staking, and stablecoin solutions. It offers most of its solutions to institutions like asset managers, exchanges, and other institutions.
BitGo published its fourth-quarter results last week. Its numbers showed that its revenue jumped to $6.2 billion in the fourth quarter, up by 439% YoY. This growth was mostly driven by increased subscription and service revenue and its stablecoin-as-a-service solution.
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For the year, the company made over $16.2 billion in revenue, up by 424% YoY. It made a net loss of $14.8 million, driven by the decline in digital assets, especially its Bitcoin treasury.
Most of BitGo’s quarterly revenue came from its digital asset sales business, which made over $6 billion. Its staking revenue came in at $58.3 million, while its subscriptions and stablecoin-as-a-service business made $39.3 million and $26.6 million, respectively.
BitGo has continued to add more clients despite the ongoing crypto market crash. It ended the fourth quarter with 5,322 customers, up by 103.5% YoY from the previous 2,615. Its users jumped by 14% to 1.2 million. The company has also received a provisional bank license in the United States.
Still, BitGo stock dropped as analysts expect that the company’s growth will slow this year. The average estimate is that its revenue from this year will be $23 billion, up by 46% YoY. It will then grow 24% in the coming year to $29 billion.
BTGO also dropped because of the ongoing crypto market crash that has impacted Bitcoin and other altcoins like Ethereum and Solana. This retreat has affected most companies in the crypto industry.
BTGO Stock Price Technical Analysis
BTGO stock chart | Source: TradingView
The eight-hour chart shows that the BitGo stock price has plunged from a record high of $24.50 in January to the current $7.67. It has also crashed below the important support level at $9.30, its lowest level on February 24.
The stock has dropped below all moving averages, while the Relative Strength Index has moved below the oversold level 26.
Therefore, the most likely BitGo stock price forecast is bearish, with the next target to watch being the psychological level at $5. In the long-term, however, BitGo share price will rebound, potentially to $10 and above as investors buy the dip.
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