Wednesday, March 23, 2022
Voyager Digital (VYGVF)(VOYG:CA)
Volumes Below Expectations; Updated Model, Lowering PT to $15
Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Challenging Environment. Cryptocurrency trading volumes continue to decline, as the Russia/Ukraine war, threatened legislation, and a weakening economy have raised concerns among investors in this new asset class. Data from The Block indicate trading volume in January fell to $833.6 billion from $1.04 trillion in December. February came in at $683.1 billion and March to date is just $469.8 billion. March could be the lowest month since December 2020.
Updated Guidance. As a result of the disappointing volumes, we have lowered our expectations for the second half of fiscal 2022. Revenue for the fiscal third quarter (ending March 31) is now projected at $98 million, down from a prior $113 million, while we reduced fourth quarter revenue to $116 million from $175 million on the assumption current trends do not improve significantly. As a result …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
