Shares of Voyager Digital (VOYG) were downgraded to "neutral" from "buy" by boutique investment firm Compass Point. Compass Point pointed to headwinds across the crypto ecosystem and questioned how the trading platform's retail investors will fare during the market crisis.
- Compass Point expects greater regulatory scrutiny for crypto companies offering credit products, analyst Chris Allen said in a note to clients Tuesday.
- Bitcoin (BTC) has fallen more than 30% this year to just over $30,000, and the collapse of terraUSD (UST) has rocked the crypto ecosystem in recent weeks.
- The firm lowered its earnings estimates and cut its price target to C$8 ($6.23) from C$14.
- Toronto-listed Voyager shares rose about 5% Tuesday after falling Monday. Shares have lost more than 75% this year.
- Voyager had announced plans Monday for a $60 million private placement.