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

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

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

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

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

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

By Michael Bellusci
AccessTimeIconMay 17, 2022, 2:56 PM
Updated May 11, 2023, 4:20 PM
Voyager Digital CEO Stephen Ehrlich (Danny Nelson/CoinDesk)
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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.

STORY CONTINUES BELOW

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

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