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.
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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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