Mizuho Lowers BitGo Price Target Amid Clarity Act Delays

Mizuho Securities has cut its price target for BitGo Holdings from $14 to $11, marking the second downward revision this year for the company, which went public at $18 per share just seven months ago. The reduction is attributed to delays in the Digital Asset Market Clarity Act and a struggling crypto market that negatively impacts revenue from digital asset activities.

Previously, Mizuho had adjusted its target from $17 to $14 earlier in the year. The firm described BitGo as a “high-growth/recurring revenue business” with “military-grade” custody capabilities, managing over $100 billion in assets. Despite the price target cut, Mizuho maintains an Outperform rating for the stock.

BitGo's stock peaked at around $24.50 shortly after its IPO in January 2026 but has since experienced a significant decline. Mizuho forecasts a 20% drop in BitGo's net revenue between 2026 and 2027, directly linked to reduced trading volumes and asset valuations in the crypto sector.

The Digital Asset Market Clarity Act, which aims to provide a clear regulatory framework for crypto firms in the U.S., is facing delays that could push its progress into 2026 or later. The outcome of this legislation is crucial for BitGo's future, as its revenue is closely tied to the value of the assets on its platform.

In a related development, Galaxy Research has reported a sharp decline in the likelihood of the Clarity Act passing this year, dropping from a 75% chance to just 10%. The firm cites time constraints and unresolved disagreements among lawmakers as key factors contributing to this downgrade.