Voyager Digital Downgraded by Compass Point on Concerns Over Crypto Markets, Retail Investing

The firm now rates the shares at neutral, down from buy.

AccessTimeIconMay 17, 2022 at 2:56 p.m. UTC
Updated May 17, 2022 at 3:24 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Shares of crypto broker Voyager Digital were downgraded to neutral from buy by boutique investment firm Compass Point, which cited headwinds across the crypto industry and which questioned how the trading platform's retail investors will fare during the market rout.

  • Compass Point expects more regulatory scrutiny for crypto companies that offer lending products, analyst Chris Allen wrote in a note Tuesday.
  • Bitcoin (BTC) has fallen over 30% this year to just above $30,000 and the collapse of terraUSD (UST) has rattled the crypto market.
  • The firm lowered its earnings estimates and cut its share-price target to C$8 ($6.23) from C$14.
  • The shares, which trade on the Toronto Stock Exchange and over-the-counter in the U.S., rose about 5% Tuesday after declining on Monday. The shares have lost more than 75% this year.
  • Voyager announced plans for a private placement financing Monday for $60 million.

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Michael Bellusci is CoinDesk's crypto payments reporter.

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Michael Bellusci is CoinDesk's crypto payments reporter.

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