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BitGo’s Cost-Cutting Move: A Gamble on Crypto’s Sluggish Future

15% Job Cuts, $29M Saved—But Risks Linger

In a stark reversal from crypto’s boom years, BitGo, a major player in digital asset custody, has slashed nearly one-sixth of its workforce—cutting roughly 15% of jobs to slash costs by $18–29 million. The move signals deep caution across the sector, where exuberance has given way to survival mode.

Analysts suggest the cuts could put BitGo on track for profitability by 2026—but only if crypto prices stay depressed. A bitter pill, perhaps, but one aimed at weathering what many now see as a prolonged downturn.

Stock Dump Adds Pressure: Will Prices Drop Further?

The cost-cutting wasn’t BitGo’s only bold move. The same week, the firm offloaded a massive chunk of its stock, flooding the market with supply. Industry watchers warn of a "supply overhang"—a wave of shares that could keep prices suppressed for months, if not longer.

Already, BitGo’s stock sits at a "Market Perform" rating with a $12 price target, suggesting analysts see limited upside in the near term.

Crypto’s Unforgiving Cycle: Profits Hinge on Timing

BitGo’s strategy hinges on low crypto prices persisting—a gamble that could pay off if the market stays bearish. But crypto’s history is one of violent swings; even with cheaper stock and leaner operations, near-term gains are far from guaranteed.

Investors will be watching closely: Will BitGo’s cuts and stock move outpace the market’s volatility—or be swept away by it?