Bitcoin price halves, so why does wallet giant Ledger still get a $40 billion valuation?

The Bitcoin market is experiencing intense volatility. After reaching a historic high of $126,000 in October 2025, Bitcoin’s price briefly dropped to $59,800 in early February 2026, a decline of over 48%.

In stark contrast, French hardware wallet manufacturer Ledger is preparing to go public on the New York Stock Exchange, with a target valuation exceeding $4 billion. Even during industry downturns, the company has garnered support from top investment banks like Goldman Sachs and J.P. Morgan.

Market Extremes

The cryptocurrency market currently shows a stark polarization. On one side, digital asset prices are broadly declining; on the other, industry infrastructure valuations continue to rise.

In the early hours of February 6, 2026, Bitcoin’s price fell over 12% from the previous day, hitting a low of $60,062, down more than 48% from its October 2025 all-time high of $126,000. This drop was dubbed by U.S. financial media as “the worst day for cryptocurrencies since the 2022 crash.”

Sharp price swings led to a surge in liquidations. Between February 5 and 6 alone, Bitcoin long positions saw nearly $1.096 billion in forced liquidations, affecting over 570,000 traders.

Meanwhile, Ledger announced plans to IPO on the NYSE, with a valuation exceeding $4 billion, backed by Goldman Sachs, Jefferies, and Barclays.

Business Model

Ledger’s success hinges on its unique “selling shovels” business model—rather than participating in the risky mining gold rush, it provides essential tools for crypto security.

Founded in France in 2014, the company primarily sells hardware wallets that help users store private keys offline. Its flagship Ledger Nano S retails at $79, and over 7 million units have been sold over the past decade.

The cleverness of hardware wallets lies in their weak correlation with cryptocurrency price movements. During bull markets, newcomers need secure storage for their newly purchased assets; during bear markets, existing users value their remaining holdings more and still require reliable storage solutions.

“No matter if the price is $100,000 or $30,000, as long as you hold coins, you need a safe place to store them.” This demand doesn’t vanish with market fluctuations.

Growth Logic

Ledger’s valuation growth is based on actual business expansion and revenue diversification, not just market hype.

In 2025, Ledger’s revenue hit a record high, reaching “several hundred million dollars,” a significant increase from over $70 million in 2024.

The company’s revenue structure is shifting from reliance solely on hardware sales toward more sustainable service models. Its product lineup has expanded from a single hardware wallet to include:

• Entry-level Nano S Plus ($79)
• Mid-range Nano X with Bluetooth ($149)
• High-end Stax with E Ink touchscreen ($279)

Ledger’s software ecosystem, Ledger Live, allows users to buy, trade, and stake cryptocurrencies directly, earning the company transaction fees. Additionally, its enterprise service, Ledger Enterprise, manages billions of dollars in assets for over 100 institutional clients.

Security Paradox

Ledger’s history is filled with controversies related to “security,” which ironically highlight the hardware wallet’s real value.

In January 2025, Ledger co-founder David Balland was kidnapped in the small town of Vierzon, central France. The kidnappers cut off one of his fingers and demanded $10 million in Bitcoin ransom.

Ironically, the kidnappers were able to locate Balland because, in 2020, Ledger experienced a data breach exposing customer information—including names, addresses, and phone numbers—posted on dark web forums. As a founder, Balland’s details were among those leaked.

This incident reveals a key reality: kidnappers cannot directly steal assets from the blockchain since private keys are stored offline and cannot be accessed online. They had to resort to primitive methods—abduction and coercion—to force victims to transfer assets manually.

Industry Maturity

Ledger’s IPO plan is not an isolated event but a sign of the broader maturity of the crypto industry, with more infrastructure companies entering the public markets.

In 2025, crypto firms raised a total of $34 billion through IPOs. Stablecoin issuer Circle raised over $10 billion, and trading platform Bullish also secured over $10 billion in funding.

In January 2026, custody provider BitGo listed on the NYSE, surging 24.6% on its first day, with a valuation of $26 billion. The second-largest U.S. crypto exchange, Kraken, aims to go public in the first half of the year with a $20 billion valuation.

These companies share a common trait: “survivors through cycles, with real revenue, auditable financials, and compliant operations”—key signs of industry maturity.

Future Challenges

Despite promising prospects, Ledger faces challenges from market competition, regulatory pressures, and its own security record.

Major hurdles include competition from tech giants—Samsung and Apple have integrated crypto wallet functions into their devices, potentially commoditizing basic storage.

The company’s security record has also been blemished: data breaches in 2020, supply chain attacks in 2023, and a third-party payment processor leak in early 2026—all threaten its core brand promise of security.

Regulatory uncertainty also looms. As a French company, Ledger must comply with EU’s MiCA (Markets in Crypto-Assets) regulations, while its NYSE listing will trigger U.S. securities law obligations. Navigating this dual regulatory environment will test its compliance capabilities.

Summary

As Bitcoin’s price continues to fluctuate on the Gate platform in February 2026, the $4 billion valuation blueprint for hardware wallet maker Ledger is gradually unfolding on Wall Street.

This French company’s rise sketches a path from niche geek toys to mainstream consumer electronics—expanding from single hardware sales to a diversified service ecosystem, from privacy controversies to a public listing. In a world where price swings are the norm, the industry’s focus on asset security has become its most resilient business model.

The demand for security always outlasts speculative frenzy. When market euphoria subsides, those providing fundamental services—“selling shovels”—will ultimately be the true winners through cycles.