BitGo Holdings Inc. (NYSE:BTGO) shares are trading higher Tuesday after the company announced a $50 million share repurchase program.
- BitGo shares are climbing with conviction. What’s fueling BTGO momentum?
The Buyback
The Board of Directors authorized the repurchase of up to $50 million of BitGo common stock — representing approximately 8% of the company’s Class A shares outstanding at current stock prices. The authorization is effective immediately and has no fixed expiration date.
BitGo said repurchases may be made through open market purchases, privately negotiated transactions, block trades, or other means, subject to market conditions and applicable legal requirements. The company expects to fund repurchases using existing cash and cash equivalents.
The board was direct about its rationale—it believes the fundamental value of the business exceeds the current market price. “This authorization reflects the Board’s confidence in our business and long-term trajectory,” said Ed Reginelli, CFO. “We believe that repurchasing our shares represents an attractive use of capital at this time while allowing us to continue investing aggressively in our platform and clients.”
BitGo Shares Rise
BTGO Price Action: At the time of publication, BitGo shares are trading 8.46% higher at $5.90, according to data from Benzinga Pro.
Image via Shutterstock
Login to comment