Mizuho slashed BitGo's price target to $11 from $14 but kept an Outperform. The CLARITY Act delay, usually a negative, could widen BitGo's regulatory lead over rivals, analysts said.
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Mizuho Securities lowered its price target on BitGo Holdings (BTGO) to $11 from $14 on Wednesday. The firm kept an Outperform rating on the crypto custody stock.
BitGo shares traded around $5.50 when the note was released. The stock has fallen sharply since the company's public debut earlier this year.
Weaker digital-asset prices have hit fee revenue and asset valuations across the sector, Mizuho analysts said. They projected lower net revenue for BitGo over the next two years.
The bigger story is the Digital Asset Market Clarity Act, or CLARITY Act. The bill would set clear rules for U.S. digital assets and split oversight among agencies. Progress has stalled. Passage could slip further into late 2026.
Most investors see the delay as a negative. Mizuho analysts took a different view. They said the holdup could work in BitGo's favor.
The company operates the first federally chartered digital asset trust bank owned by a publicly traded entity. Its regulatory standing does not depend on the new law. Competitors that need more clarity or approvals face rising hurdles the longer the framework stays unresolved, the analysts said. Each extra quarter of uncertainty widens BitGo's lead on licenses and compliance.
Beyond regulation, Mizuho highlighted BitGo's operating trajectory. The customer base grew about 27% year over year. Subscription and services revenue rose sequentially. The analysts said current valuations punish the company harder than its performance warrants.
BitGo has also struck partnerships with large institutions working on tokenization and on-chain financial products. Those deals support its role as infrastructure provider, the analysts said.
The target cut follows earlier reductions since the IPO. The Outperform rating implies Mizuho sees meaningful upside from current levels if market conditions improve or BitGo's regulatory position keeps separating it from rivals.
Bitcoin's direction and the CLARITY Act's fate will shape the stock's near-term path. Mizuho's analysis frames the legislative delay not as a headwind but as a moat for a firm that already holds federal permissions.
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