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Voyager Digital (OTCQX:VYGVF) is a small-cap crypto progress inventory that I’ve been looking forward to fairly a while as a result of I personally use their app.
This is my first time protecting Voyager Digital on Seeking Alpha as a result of I used to be apprehensive concerning the threat of potential draw back because of the present stage of the crypto market cycle.
My aim is to give you well timed funding insights & analysis on the proper second so you’ll be able to revenue from market inefficiencies.
Several different Seeking Alpha writers beforehand positioned sturdy purchase rankings on VYGVF inventory and now shares are buying and selling down 70% YTD.
Data by YCharts
To be frank, VYGVF was grossly overvalued over the previous few months however now could be the time to get serious about selecting up some shares.
That’s as a result of Bitcoin has dipped beneath $40,000 and we’re roughly 8 months away from what I imagine to be the underside of the crypto bear market in January 2023.
VYGVF inventory trades beneath $4 and I feel it is time to provide you with guys a whole rundown as a result of Voyager Digital will develop into an vital participant within the crypto market.
Voyager Digital Has a Large, Growing Verified Userbase
Voyager Digital is a commission-free cryptocurrency trade that generates income from charging a variety on its crypto transactions.
The firm has grown like loopy since 2020 and surpassed 3.2 million verified customers through the interval ending on December thirty first, 2021.
Voyager Digital Verified User Growth (InvestVoyager.com)
Voyager Digital’s preliminary consequence ending on March thirty first, 2022 reveals that verified customers elevated to three.5 million as properly.
Value of belongings on the Voyager Digital platform exceed $5.6 billion on the finish of 2021 because of final 12 months’s epic crypto bull run.
Voyager Digital Assets on Platform (InvestVoyager.com)
Volume traded and income are carefully correlated as proven within the graph beneath and Voyager Digital earned $164 million through the 3 month interval ending on December thirty first, 2021 through the November crypto bearish selloff.
Voyager Digital Revenue and Volume (InvestVoyager.com)
Cryptocurrency remains to be a model new trade that’s anticipated to develop sooner than the web did within the 1990’s. In layman’s phrases, crypto is barely being utilized by early adopters so buyers ought to contemplate shares like Voyager Digital as multi-year investments.
Understanding the Crypto Market Cycle Before Investing in VYGVF
I wrote extensively concerning the Bitcoin halving cycle beforehand and you must perceive how crypto market cycles function earlier than investing in crypto shares.
Failing to grasp these key parts means you’ll pay much more for crypto shares over the long term at lower than best instances.
Voyager Digital makes cash when there’s excessive volatility within the crypto markets. Massive bull runs or large selloffs are when the corporate makes probably the most cash. However, durations of low curiosity in crypto are when crypto costs fall and that is when crypto shares get crushed.
We are at present in that point interval as of writing this text, which is precisely why my curiosity in VYGVF shares has elevated.
Bullish Catalysts for Voyager Digital
Many crypto buyers do not like placing all their eggs in a single basket and meaning there’s room for smaller corporations like Voyager in an trade dominated by Coinbase (COIN), Binance (BNB-USD), and Crypto.com (CRO-USD).
First off, Voyager Digital is planning an growth to Canada and France in 2022 to extend its verified userbase and increase income.
You’ll see lots of crypto corporations make large strikes by 2022 in preparation for the uptick within the crypto bull market throughout 2023.
The firm additionally has plans for a cashback curiosity debit card, NFTs, and the addition of extra tradable cash on its platform.
Crypto is projected to achieve 1 billion customers by 2024 so now is a superb time to choose up these beaten-down crypto shares when nobody else needs them.
Crypto Adoption Curve (InvestVoyager.com)
Be grasping when others are fearful works wonders if buyers can management their feelings and purchase high quality corporations when they’re unpopular.
Risk Factors
Voyager Digital desperately wants to use for a NASDAQ itemizing to make it simpler for buyers to buy the inventory. Even smaller crypto corporations corresponding to BTCS (BTCS), which I wrote about beforehand, are listed on the NASDAQ for optimum investor publicity.
VYGVF trades on the OTC markets and can’t be bought on a number of fashionable inventory buying and selling apps corresponding to Robinhood and Webull. There are hundreds of thousands of retail buyers who can not purchase the inventory, which actually hurts its upside and creditability.
Competition is one other situation however Voyager Digital continues to develop its userbase regardless of ongoing market share strain from Coinbase, Binance, Kraken (KRAK-USD), FTX (FTX-USD), Crypto.com, and Gemini (GUSD-USD).
Voyager Digital Competitors (InvestVoyager.com)
I imagine a rising tide lifts all boats and all of those corporations will carry out properly as a result of many crypto buyers use a number of platforms to mitigate threat.
Lastly, Voyager Digital does not have a desktop model for the time being however the firm is engaged on a beta launch for the time being. This facet has damage the corporate’s backside line and will entice extra crypto merchants as soon as the desktop launch is formally accomplished.
Conclusion
Voyager Digital seems low cost at these worth ranges however the crypto bear market is not over. I would not be shocked if VYGVF dips beneath $3 and heads again in the direction of $2 over the following few months.
However, I do assume it is a good time to begin constructing a place in preparation for the market flipping and bullish runup in early 2023.
My technique is to take a portion of each paycheck and greenback value common into my favourite crypto shares for the time being. I’m loading up on each Bitcoin (BTC-USD) and crypto shares by 2022 whereas nobody else needs them.
Once the crypto market bottoms in early 2023, I imagine VYGVF shares may 10x as we method the following Bitcoin halving in 2024. That’s almost 2 years from now however I imagine buyers who accumulate throughout bear markets will likely be handsomely rewarded as soon as the lots soar again into the markets.
It will likely be tough for Voyager Digital to take care of its spectacular 50%+ CAGR person progress however I venture them to have round 4 million verified customers by the top of 2022.
VYGVF trades at a worth to gross sales ratio of 1.5 and appears enticing at these ranges. This is certainly one of my favourite 10x crypto shares that would soar through the subsequent crypto bull run.
