BTGO Shareholder Alert: BitGo Holdings, Inc. Securities Class Action Lawsuit - Investors With Losses May Contact Levi & Korsinsky

Shareholders Who Acquired BitGo Stock in or Traceable to the January 2026 IPO Urged to Review Claims Under Securities Act Sections 11 and 15

NEW YORK, July 15, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP announces that a securities class action has been filed against BitGo Holdings, Inc. (NYSE: BTGO).

YOU MAY BE AFFECTED IF YOU:

• Purchased BitGo Class A common stock in or traceable to the Company's January 22, 2026 initial public offering
• Lost money on your BitGo investment
• Acquired shares between January 22, 2025 and May 13, 2026

Find out if you qualify for recovery or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

BitGo priced its IPO at $18.00 per share on January 22, 2026, raising over $187.58 million. By March 27, 2026, shares had fallen to $7.67, a decline of more than 57% from the offering price. The lead plaintiff deadline is August 7, 2026.

The Alleged Registration Statement Misrepresentations

Section 11 of the Securities Act of 1933 imposes strict liability on issuers when registration statements contain untrue statements of material fact or omit facts necessary to make those statements not misleading. The action contends BitGo's Registration Statement and Prospectus, declared effective January 21, 2026 and filed January 23, 2026 respectively, fell short of this standard.

As pleaded, the Offering Documents painted a picture of a digital asset infrastructure company with "strong and resilient" business fundamentals and "progressively increasing" trading activity. These characterizations allegedly failed to convey the true scope and severity of the threat that declining digital asset prices posed to virtually every revenue segment.

What the Registration Statement Allegedly Misrepresented

• Projected net income from operations of $3.2 million to $3.5 million for fiscal year 2025, when the Company ultimately reported a net loss of $14.8 million
• Described business fundamentals as "strong and resilient over time" while the Company's Bitcoin treasury was exposed to material unrealized losses from digital asset price declines
• Estimated Digital Asset Sales revenue between $15,475.7 million and $15,522.3 million without adequately disclosing the margin compression risk that would cut the segment's margin from 0.47% to 0.21%
• Characterized Assets on Platform growth trajectory as evidence of platform health without adequately warning that AoP would decline from $104.0 billion to $81.6 billion
• Asserted that staking revenue and trading volumes provided diversification from asset price declines, when staking revenue ultimately fell 16% year-over-year and assets staked dropped 51%

IPO Due Diligence and Scienter

Plaintiffs allege the Registration Statement was negligently prepared. All Individual Defendants, including directors and officers, signed or authorized the signing of the Registration Statement. The action contends these signatories had access to internal data showing the fragility of the Company's revenue model under digital asset price pressure, yet permitted Offering Documents to reach the market with allegedly inadequate risk disclosure.

The complaint identifies eight individual defendants who signed the Registration Statement, each bearing potential liability under Section 15 of the Securities Act as controlling persons of BitGo.

"The PSLRA provides important protections for investors harmed by alleged securities violations. When IPO documents project profitability and the company reports a $14.8 million net loss within months of going public, shareholders deserve a full accounting of what was known at the time those projections were made." -- Joseph E. Levi, Esq.

Start your claim now or call (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP

Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Motions for lead plaintiff must be filed with the Court by August 7, 2026.

Frequently Asked Questions About the BTGO Lawsuit

Q: Who is eligible to join the BTGO investor lawsuit? A: Investors who purchased BitGo Class A common stock in or traceable to the January 22, 2026 IPO, or who purchased BTGO securities between January 22, 2025 and May 13, 2026, and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What specific misstatements does the BTGO lawsuit allege? A: The complaint alleges BitGo's Registration Statement and Prospectus made materially false or misleading statements regarding the Company's business resilience, financial projections, and the risk that declining digital asset prices posed to its revenue model. When the true financial condition was revealed, the stock price declined sharply from the $18.00 IPO price.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I already sold my BTGO shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What court was the BTGO class action filed in? A: The case was filed in the United States District Court for the Eastern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP