Mizuho cuts BitGo’s price target to $11, stating that the delay of the Clarity Act has instead expanded regulatory advantages.

Mizuho Securities’ latest research note has cut its price target for crypto custody firm BitGo from $14 to $11, while maintaining an “Outperform” rating. The analyst noted that the ongoing delay of the U.S. crypto market structure bill, the Clarity Act, could instead help BitGo solidify its competitive edge. Mizuho said the market widely views the delay in regulatory frameworks as a negative for BitGo, but the firm believes the opposite is true. Since BitGo already operates the U.S.’s first federally chartered digital asset trust bank controlled by a public company, its business does not depend on new regulations taking effect, while competitors still await clarity on regulatory rules. The analyst pointed out that with each additional quarter of delay, BitGo’s existing licenses, compliance framework, and first-mover regulatory advantage will further accumulate, raising the barrier to entry for new competitors. In terms of performance, BitGo’s second-quarter revenue hit $4.33 billion, up 79.6% year-over-year, with a net loss of $19 million, a significant narrowing from the $60.7 million loss in the prior quarter. Mizuho believes the market is currently valuing BitGo as a “distressed company,” but it actually operates more like a “high-growth, recurring revenue business.” The report stated that BitGo’s customer count rose 27% year-over-year, while subscription and services revenue grew 7% quarter-over-quarter. In addition, the company’s partnerships with institutions including DTCC, Canton, and Figure position it to become a key infrastructure provider for tokenized securities and on-chain financial products.