Voyager Digital Ltd

Stock: VYGVF

Rating: Buy

Author: Waleed M. Tariq

Overview

  • Voyager is a phone exchange platform for trading, receiving, and safeguarding cryptocurrencies.
  • The firm had 43,000 financed accounts and $240 million in AUM in 2021; it now has over 1 million and $7 billion.
  • Voyager uses loyalty and incentives programs to promote its popularity and user base.

Bullish

  • In the last 2 years, the company has grown significantly and is set to maintain the growth.
  • The company’s funded accounts, revenue, and AUM have expanded 23- and 30-fold, respectively.
  • Voyager partners with industry leaders to diversify its presence.

Bearish

  • Given its promising strategies and booming business, I am purely bullish on the stock.

Valuation

  • The company’s $13 share price is cheap. This is a terrific time for long-term investors to buy crypto exchange stock.
  • The company expects a net profit in fiscal year 2022, with revenue of $531 million and negative Free Cash Flow (FCF).

Development

  • Voyager’s competitiveness depends on several growth strategies.
  • The business bought Coinify to build a “crypto payment gateway.” Voyager may now accept crypto payments for online and in-store transactions abroad.

Synergy with CoinLedger

  • CoinLedger, a tax reporting platform for cryptocurrency, DeFi, and NFT customers, will absorb bitcoin transactions in 2021.

Mastercard Voyager Debit

  • Voyager launched a debit card in November.
  • The first crypto-based debit card will offer up to 9% yearly rewards on top of Voyager Loyalty Program incentives.
  • The card will have no annual fees and a monthly reward based on average monthly balance.

Conclusion

  • Proactive solution offering is a market leader’s characteristic, and Voyager seems well on its way to paying off its investors soon.