BitGo approves $50 million buyback as stock jumps 20%

The digital asset infrastructure provider said the program could retire up to 8% of outstanding common stock, though shares still trade about 65% below the $18 January NYSE IPO price.

Summary

BitGo approved a $50 million share repurchase program that allows the digital asset infrastructure provider to buy back as much as 8% of its outstanding common stock through open-market purchases, privately negotiated transactions and block trades. The shares rose as much as 20% on the news, but the stock remained about 65% below its January NYSE IPO price of $18, recently changing hands near $6.07. Buybacks typically signal that a company sees value in its shares and can support the stock by reducing the number of shares in circulation.

Terms & Concepts
  • share repurchase program: Company plan to buy back shares
  • block trades: Large privately arranged stock transactions