Mizuho cuts BitGo price target to $11, but says Clarity Act delays could prove advantageous
Quick TakeMizuho analysts cut their stock price target for BitGo in a research note published Thursday to $11 from $14.They view the company as a “high-growth/recurring revenue business,” citing a 27% year-over-year increase in the customer base. Delays to U.S. crypto market-structure legislation could benefit crypto custodian BitGo Holding by extending its regulatory head start over competitors. Thats according to Mizuho analysts, who, despite cutting their price target for the companys shares, maintained their Outperform rating. Mizuho analysts cut their stock price target for BitGo (BTGO) to $11 from $14. BTGO was changing hands at $5.61 as of 2:47 p.m. EST, according to The Blocks price data. “Consensus reads US market-structure delay as an overhang. We believe it might quietly help BitGo,” Mizuho analysts wrote in a research note to clients. The company already runs the first federally chartered digital asset trust bank owned by a publicly traded company, so its regulatory standing doesnt hinge on new legislation passing. The Clarity Act is intended to establish a federal market-structure framework for digital assets and clarify how authority is divided between regulators. The legislation has faced repeated delays amid negotiations over several key issues. The delay could give BitGo an advantage while competitors wait for the