BitGo shares surged Thursday after the crypto custodian announced a $50 million share buyback, providing a rare bright spot for a stock that has lost 65% of its value since its IPO. The move aims to signal confidence amid a tough environment for newly public digital-asset firms.
The buyback comes as crypto markets lag and investor attention shifts toward AI stocks, pressuring valuations across the sector. BitGo's stock had languished since its public listing, and the buyback is an attempt to support its share price during a prolonged downturn.
Meanwhile, a different story is unfolding in SpaceX's orbit. According to BeInCrypto, $45 million in short positions are betting against SpaceX's stock on crypto perpetuals markets, where the stock trades around the clock. After launching near $3 trillion, the stock has settled at around $2.66 trillion, attracting bearish wagers.
Analysts caution that BitGo's buyback may only provide temporary relief if broader crypto sentiment remains weak. Similarly, SpaceX shorts face high funding costs, and a short squeeze could amplify gains if bullish momentum returns.