Most of the stocks in the cryptocurrency stock market are tied to the broader market for cryptocurrencies. Coinbase, the largest exchange, saw its stock drop 13% when the price of Bitcoin decreased significantly. This in turn suppressed trading fees on the exchange and caused a hefty drop in its stock price. But not all of the stocks are worth investing in. There are other ways to invest in these stocks, including buying the underlying currency and using them to invest in a cryptocurrency exchange.
Voyager shares trade on the Toronto Stock exchange
The Voyager shares will begin trading on the Toronto Stock exchange at the opening of the market on November 13. The company has filed a final short form Base Shelf Prospectus that will allow it to make offerings of its common shares, warrants, units, debt securities, and subscription receipts. Voyager has partnered with Bosonic, a crypto-focused prime broker, to provide its customers with greater liquidity. Voyager is also beta-testing new products such as loan products, margin trading, and investment accounts.
The company also plans to introduce a feature to buy traditional stocks with its stablecoin USDC. In May, Voyager announced a partnership with Market Rebellion, which will operate a regulated broker-dealer and handle Voyager customers’ equity trades. Stablecoins are digital assets that track traditional currencies. By investing in these assets, Voyager customers can earn stablecoins, which are digital currencies that follow traditional currency.
Voyager has a market cap of $2.97 billion CAD
While the stock trades under the ticker VOYG, the company has its own cryptocurrency known as VGX that is separate from the stock. As of December 3, 2021, VGX is valued at $1.3 billion CAD. It is currently listed on cryptocurrency exchanges and cannot be traded on a public stock exchange. However, investors can buy VGX through cryptocurrency exchanges.
The company also offers a loyalty program. With its Earn program, investors earn interest on a variety of digital assets including Polkadot, USDC stablecoin, and more. The company also continues to add new assets to its portfolio. For example, Solana (CRYPTO: SOL) earns 3% per year. In addition, Voyager offers other incentives to its investors, such as monthly interest payments and the opportunity to redeem points for cash or crypto.
Voyager has a market cap of $1.3 billion CAD
This crypto exchange is booming, with the market cap of Voyager currently hovering around C$1.3 billion. Its revenue forecast for next year is C$430 million, which is about four times the current valuation. But the company has been a bargain, with the market cap soaring along with the price of Bitcoin and interest in cryptos. Despite its price, Voyager has been steadily recruiting new users.
The company’s platform offers an easy-to-navigate mobile app and access to more than 50 crypto assets. It also has a desktop-laptop interface, as well as a Visa-backed debit card that returns 9.5% APR on the assets held. It recently acquired LGO Markets, which gives it regulatory compliance to operate across the European Union. However, investors should be wary of the company’s lack of history in the crypto industry.
Silvergate Capital (SI) is a cryptocurrency’s “crypto bank”
Morgan Stanley analyst Ken Zerbe recently began covering the company, and expects it to outperform the banking industry this year. This is particularly promising because the company’s main business is the cryptocurrency market, which is notoriously volatile. The company is currently running three branches and has opened nearly 61 accounts on major US exchanges. Its assets increased by over 30% last year, from $978 million to $1.7 billion.
Although most people still view cryptocurrencies as a form of currency, Silvergate management has been watching the market for years and realized that it would soon be possible to invest in them. The company has since made a number of small loans to its customers and has announced partnerships with Coinbase and Fidelity to act as digital custodians for digital assets. The companies will then use the digital assets as collateral for loans and make money.
Bitcoin’s performance during the pandemic
After suffering through a dreadful May, the cryptocurrency Bitcoin bounced back to triple-digits in mid-October. While stocks and gold both saw a decline in value, bitcoin surged higher. Cryptocurrency markets also outperformed traditional stock markets during the year, with the year-end surge contributing to that increase. Although the currency’s value still fluctuates daily, it is now much more accessible to the general public.
However, despite the market’s negative performance during the coronavirus, the cryptocurrency’s gains during the pandemic have reinforced the corporate positions and prompted an uptick in price. In addition to corporate investors, bitcoin attracted a wide base of followers and was traded on cryptocurrency exchanges like a stock. This prompted a boom in demand for the currency and led to investors and traders treating it like an asset.