Summary
- BitGo stock rose as much as 20% on Wednesday after the company authorized a $50 million share repurchase program.
- The equity remains more than 65% below its January IPO price.
- The firm is positioning itself to benefit from Europe’s crypto licensing deadline by offering regulated infrastructure services.
Crypto infrastructure provider BitGo’s (BTGO) shares jumped as much as 20% on Wednesday after the company revealed 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 stated 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 stated 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.
