BitGo announced a $50 million stock buyback plan, and the stock price rose by 20% at one point

Digital asset infrastructure provider BitGo (BTGO) announced a $50 million stock buyback plan on Wednesday, causing its stock price to rise by as much as 20%. The plan allows BitGo to repurchase up to $50 million of its common stock through open market purchases, privately negotiated transactions, and block trades, accounting for approximately 8% of its outstanding shares. The company stated that the plan is effective immediately and has no fixed expiration date.

Despite the stock price increase on Wednesday, BitGo's stock is still down about 65% from its listing on the New York Stock Exchange in January of this year. The IPO issue price was $18, and the recent trading price is around $6.07. The decline in BitGo's stock price reflects a general weakening of investor sentiment towards digital asset-related stocks. Following last year's IPO boom for crypto companies, the prices of Bitcoin and cryptocurrencies have fallen, and market attention has gradually shifted towards AI companies and the anticipated IPO pipeline of tech companies like SpaceX (SPCX). Several crypto companies, including Kraken and Consensys, have paused their IPO efforts amid the volatility in the crypto market.