Voyager Digital stock is showing great results this year. It means that it can become a good choice for investors who are interested in the crypto industry.
Cryptocurrency broker Voyager Digital Canada Ltd (CNSX: VYGR) has seen a doubling of its stock from last year. This brings the heavily regulated company into the spotlight as an example of a company that is set to change things. Sources say that Voyagers Digital stock doubled to reach C$0.56 cents a share.
The stock prices fell by 18% on Monday. The drop occurred after the company announced the raising of C$2.9 million. This occurred through a dilutive sale of fresh equity via private placement.
Investors included Streamlined ventures LLC Susquehanna Government Products and CNBC market rebellion co-founders Jon Najarian, Pete Najarian, and Dirk Mueller-Ingrand.
Voyager Digital Stock Performance
CEO Steve Ehrlich has indicated that the company will use the funds to fund the expansion of its operations into new markets. Canada and Europe are initial markets for the cryptocurrency broker. This comes as in comparison to Bitcoin (BTC) 35% year-to-date performance. Voyager Digital went public through a reverse merger a year ago.
With all the volatility of Voyager stock, it still is one of the new cryptocurrency companies that are highly regulated. While most of the crypto space is in private hands, Voyager Digital can serve as a model for future companies.
The advantages of public companies are many. Access to easy capital, free media exposure, and broader adoption of goods and services. On the other hand, there are also many responsibilities. Steve Ehrlich told sources:
“Everything we do is scrutinized by auditors, and every decision we make as a board and as a company, we know is something that is potentially disclosable.”
Even so, it still brings the crypto into the mainstream. Most of the companies that are currently ruling the crypto space are still private. New startups could overtake them if they follow the regulation route. The major issue with a lot of people is that they don’t like the exposure that going public brings.
Transparency Is Needed
This sort of transparency is what the crypto industry supposed to be about in the first place. Voyager Digital for instance last month released its financials. Third-quarter revenue grew to $282,078. This is from $88,146 in December last year.
There was also the acquisition of Circle invest accounts. Circle is another company that is heavily regulated as well. Their USDC stablecoin is also under heavy scrutiny by regulators.
As the industry grows, it is this kind of transparency that will drive the adoption curve.
Already, many are beginning to question the private status of many leading entities and people within the crypto space. This has invoked apathy in the minds of new adopters of cryptocurrencies and their underlying technologies.
Companies such as Voyager Digital also present another opportunity for profit-making. This time under the watchful eyes of the government authorities. Another plus for the crypto space.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.