Voyager Digital (TSE: VOYG) (VYGVF) develops and commercializes a digital platform that focuses on enabling users to buy and sell digital assets, such as cryptocurrencies.
On Tuesday, the company announced that it closed its private placement of common shares for gross proceeds of US$58 million. The raise was done at a price of US$2.34 per share or the equivalent of C$3.00 per share. The company expects to close an additional US$2 million worth once approved by the Toronto Stock Exchange.
The result of this raise is that the company now has a cash position worth US$175 million. When combining its crypto holdings and net cash, Voyager Digital has US$225 million.
The stock has been on a relentless decline from its all-time high in March 2021, losing over 90% of its market value. Offerings of common shares are dilutive to shareholders, especially when share prices are low. As a result, it may create additional short- to medium-term headwinds for the share price.
Investor Sentiment
The sentiment among investors is currently very negative. Out of the 521,747 portfolios tracked by TipRanks, only 0.4% hold Voyager Digital. In the last 30 days, 3.5% of those holding the stock reduced their positions.
Likewise, 0.7% of TipRanks portfolios reduced their holdings in Voyager Digital in the past seven days. The stock’s sentiment is below the sector average, as demonstrated in the image below:
Wall Street’s Take
Turning to Wall Street, Voyager Digital has a Strong Buy consensus rating based on five Buys, one Hold, and zero Sells assigned in the past three months. The average Voyager Digital price target of C$15.83 implies 457.4% upside potential.
Final Thoughts
Investors currently view the company in a negative light, which is highlighted by the 90%+ decline in share price. Furthermore, the new private placement is unlikely to help the share price anytime soon. Nevertheless, analysts currently have a positive outlook on the company.
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