Mizuho has revised its price target for cryptocurrency custody firm BitGo to $11, down from a previous estimate of $15. The reduced valuation reflects uncertainty around regulatory developments. Mizuho analysts view BitGo as a high-growth business with increasing recurring revenue, citing a 27% year-over-year expansion in customer base.
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The Clarity Act's potential delays could prove advantageous for BitGo, according to the analysts. This is because any changes to regulations would likely require custody firms like BitGo to adapt and invest heavily in compliance. The company may be able to use this time to solidify its position in the market.