Although Voyager is just three years young, it’s now one of my largest positions. Voyager Digital is a cryptocurrency broker, similar to Coinbase. With the rise of cryptocurrencies like Bitcoin, Ethereum, Doge and Safemoon, I’ve been taking a lot more interest into crypto stocks and today we’re gonna be looking at Voyager (VYGVF, VYGR stock) specifically. As they say… Voyager stock to the moon?
On July 15, Voyager Digital announced Record Quarterly Revenue with Growth of Over 65% from the Previous Quarter. Meaning :
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0:00 Impressive growth 1:25 How Voyager Makes Money 3:28 Growth drivers 6:37 Catalysts + Valuation + PT 8:57 Risks 9:42 Conclusion 🔥
Looking forward, Voyager will continue to bring new products to their platform and expand geographically. In 2021 and beyond, they expect the addition of debit cards, credit cards, adding stock trading to the platform, and finally the ability to trade on margin. Complementing this, they will look to grow internationally by expanding their operations to both Canada and Europe. The company just announced they were looking for new acquisitions to help user growth. Other eventual revenue opportunities include getting into payments processing.
Yes, cryptocurrency is volatile, but who said it wasn’t. If Bitcoin flops, Voyager will still profit off of the trading volatility. Investing in Voyager is investing in cryptocurrency in general, not only Bitcoin. Voyager has over 200M in the bank, which provides a nice financial safety cushion. I think Voyager is trading at a more than reasonable valuation, especially considering their exponential growth. That’s why I own a decent position in Voyager for the long-term, which is currently equally weighted to my Coinbase position. I'm glad to be holding the stock at such a low valuation for the long-term. These stocks are bound to do great in the years to come.
Voyager has 2 main sources of revenue : spread revenue and interest revenue. Estimated spread revenue is derived by the trading velocity of their assets. Spread revenue essentially made thanks to the discrepancy between when the buy order is sent, and when the order actually goes through. There’s a time lag, and that’s when Voyager makes some money. The second way Voyager makes money is through interest revenue, which is gross interest earned on the overall assets under management.
