Crypto custody startup BitGo said ‍on Monday it was ‍targeting a valuation of up to $1.96 billion in its U.S. ​initial public offering, seeking to tap into the investor appetite for crypto firms.

The Palo ⁠Alto, California-based firm and some of its existing shareholders aim to raise as ⁠much as $201 ‌million by offering 11.8 million shares priced between $15 and $17 each.

The IPO market is expected to continue on its recovery path this ⁠year, building on the momentum started in 2025, despite facing challenges such as tariff-driven volatility, a prolonged government shutdown and a late-year selloff in AI stocks.

More crypto firms plan to go public, including crypto exchange ⁠Kraken, after stablecoin issuer Circle ​and crypto exchange Bullish made their blowout stock market debuts last year.

The sector, however, has faced ‍turbulence following a sharp crypto selloff in October, raising the bar for companies seeking investor support.

Recent ​pressure on AI and tech valuations has sharpened investor scrutiny across risk assets, prompting a "flight to quality" that favors regulated companies over more speculative crypto ventures, positioning BitGo as a more defensive play within the sector, said Lukas Muehlbauer, IPOX research analyst.

However, "the company aims to capitalize on the early 2026 market momentum, where small and mid-cap index outperformance has created a favorable window for mid-sized offerings like BitGo," added Muehlbauer.

Founded in 2013, BitGo is one of the ⁠largest crypto custody firms in the United States. ‌It stores and protects digital assets for clients, a role that has gained importance as institutional interest in crypto grows.

Goldman Sachs and Citigroup are the ‌lead underwriters ⁠for the offering.

BitGo intends to list on the New York Stock Exchange under the ⁠symbol "BTGO".

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Vijay Kishore)