Voyager Digital Reports Revenue of US$175 Million for Fiscal 2021 and Provides Business Update

TSX: VOYG
OTCQX: VYGVF
Borse Frankfurt: UCD2

NEW YORK, Oct. 29, 2021 /CNW/ - Voyager Digital Ltd. ("Voyager" or the "Company") (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), one of the fastest-growing, publicly traded cryptocurrency platforms in the United States, today announced it has filed its full-year consolidated financials for the fiscal year ended June 30, 2021 and is pleased to provide shareholders with a business and operational update.

"Fiscal 2021 was a breakout year for Voyager, positioning our platform to be a leading player in the digital asset arena as crypto and related blockchain technologies are increasingly embraced by the mainstream," said Steve Ehrlich, Voyager's CEO and Co-founder. "Voyager continues to deliver noteworthy performance through verified user and funded account growth punctuated by providing users with a transparent, safe, secure and trusted personal cryptocurrency platform. We continued to see significant net new funded accounts and net new asset inflows on the platform and as we add more product extensions, we believe the ability to leverage our growing user base will accelerate our revenue growth and provide diversification to our revenue mix."

Fiscal Year 2021 Financial and Business Milestones:

• Total revenue increased to $175 million, from $1 million in FY20
• Operating Income of $56 million, compared to an Operating Loss of $11 million in FY20
• Total Verified Users grew to 1.75 million, up from 86,000 at June 30, 2020
• Total Funded Accounts grew to 665,000 from 23,000 at June 30, 2020
• Total Assets Under Management grew to $2.6 billion from $35 million at June 30, 2020
• Added to our leadership team in key areas
• Increased our headcount to 141 at June 30, 2021, from 36 at June 30, 2020
• Invested in and developed a strategic partnership with Blockdaemon to deliver enhanced staking capabilities

"We are seeing industry volumes rebound off extreme midsummer weakness, and are excited about the prospects ahead," continued Ehrlich. "As we started to see lower than expected volumes in the summer months, we turned our attention to enhancing our rewards programs as a customer acquisition and retention tool. In the September quarter, we started focusing on account acquisition as our key performance metric.  Voyager remains dedicated to growth in funded accounts and deposits and you can expect we will be more aggressive with both our marketing spend as well as our rewards offerings to accelerate growth. As we diversify our revenue streams to enhance the long-term value of each customer and expand our market opportunity internationally, we believe the best is yet to come for the Voyager platform."

Voyager will be announcing the results of its first quarter ending September 30th on or about November 15th, and will provide further commentary on its second quarter ending December 31st based on current trends and a very robust October which validates its strategy of total focus on account and deposit growth.

For more detailed information, the Company encourages investors to read its audited financial statements and related Management Discussion & Analysis ("MD&A") for the three and twelve months ended June 30, 2021, which were filed with SEDAR yesterday.

The Company also wishes to provide an update on the US$75 million Private Placement of common shares with Alameda Research announced on October 28, 2021. The Company is issuing a total of 7,723,996 common shares to Alameda Research at a price of US$9.71 per common shares. The newly issued shares are subject to a statutory hold period of 4 months and one day from the date of closing and are subject to a lock-up agreement of one year from the closing date.

The TSX has not approved or disapproved of the information contained herein. The Private Placement with Alameda Research is subject to the satisfaction of certain customary closing conditions, including the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange.

Conference Call Details
Voyager will discuss its fiscal 2021 results today, October 29, 2021, via a conference call at 8:00 a.m. Eastern Time. To access the webcast, please register by clicking here. A live webcast and a replay will be available on the Investor Relations section of the Company's web-site at investvoyager.com/investorrelations/events.

About Voyager Digital Ltd.
Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2) is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 60 different crypto assets, with zero commissions, using its easy-to-use mobile application, and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

Forward Looking Statements
Certain information in this press release, including, but not limited to, statements regarding future growth and performance of the business, momentum in the businesses, future adoption of digital assets, and the Company's anticipated results may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Voyager's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Forward looking statements are subject to the risk that the global economy, industry, or the Company's businesses and investments do not perform as anticipated, that revenue or expenses estimates may not be met or may be materially less or more than those anticipated, that trading momentum does not continue or the demand for trading solutions declines, customer acquisition does not increase as planned, product and international expansion do not occur as planned, risks of compliance with laws and regulations that currently apply or become applicable to the business and those other risks contained in the Company's public filings, including in its Management Discussion and Analysis and its Annual Information Form (AIF). Factors that could cause actual results of the Company and its businesses to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; changes in laws or approaches to regulation, the failure or delay in the adoption of digital assets and the blockchain ecosystem by institutions; changes in the volatility of crypto currency, changes in demand for Bitcoin and Ethereum, changes in the status or classification of cryptocurrency assets, cybersecurity breaches, a delay or failure in developing infrastructure for the trading businesses or achieving mandates and gaining traction; failure to grow assets under management, an adverse development with respect to an issuer or party to the transaction or failure to obtain a required regulatory approval. In connection with the forward-looking statements contained in this press release, the Company has made assumptions that no significant events occur outside of the Company's normal course of business and that current trends in respect of digital assets continue. Readers are cautioned that Assets Under Management and trading volumes fluctuate and may increase and decrease from time to time and that such fluctuations are beyond the Company's control. Forward-looking statements, past and present performance and trends are not guarantees of future performance, accordingly, you should not put undue reliance on forward-looking statements, current or past performance, or current or past trends. Information identifying assumptions, risks, and uncertainties relating to the Company are contained in its filings with the Canadian securities regulators available at www.sedar.com. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. The Company assumes no obligation to provide operational updates, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and readers should not put undue reliance on past performance and current trends.  Refer to definition of certain Non-IFRS terms in Management's Discussion and Analysis including Assets Under Management, Adjusted EBITDA and Adjusted Working Capital. All figures are in U.S. dollars unless otherwise noted.

The TSX has not approved or disapproved of the information contained herein.

Press Contacts

Voyager Digital, Ltd. 
Michael Legg
Chief Communications Officer
[phone]
[email protected]

Voyager Public Relations Team
[email protected]

Voyager Digital Ltd.
Consolidated Statements of Financial Position
(USD, in thousands)

		June 30, 2021			June 30, 2020
Assets
Current assets
Cash and cash equivalents		$	193,933		$	3,629
Cash held for customers		162,852			1,495
Crypto assets held		2,286,399			13,107
Crypto assets loaned		393,561			19,104
Investments		31,359			-
Other current assets		5,839			519
Total current assets		3,073,943			37,854
Intangible assets		559			757
Other non-current assets		2,860			160
Total assets		$	3,077,362		$	38,771
Liabilities
Current liabilities
Crypto assets and fiat payable to customers		$	2,807,015		$	33,616
Crypto assets borrowed		36,832			-
Warrant liability		23,810			2,197
Other current liabilities		22,644			1,792
Total current liabilities		2,890,301			37,605
Other non-current liabilities		739			615
Total liabilities		2,891,040			38,220
Equity
Share capital		265,704			37,708
Share-based payments reserve		15,125			2,913
Warrant reserve		3,457			2,610
Treasury shares		(3,796)			-
Retained deficit		(94,168)			(42,680)
Total equity		186,322			551
Total liabilities and equity		$	3,077,362		$	38,771

Voyager Digital Ltd.
Consolidated Statements of Loss
(USD, in thousands except for shares data)

			Year Ended June 30,
			2021			2020
Revenues
Transaction revenue			$	154,047		$	859
Fees from crypto assets loaned			21,009			291
Total revenues			175,056			1,150
Expenses
Rewards paid to customers			47,102			242
Marketing and sales			23,609			275
Share-based payments			12,864			1,399
Compensation and employee benefits			7,917			3,250
Total compensation and employee benefits			20,781			4,649
Trade expenses			7,985			346
Customer onboarding and service			7,390			196
Professional and consulting			4,495			1,332
General and administrative			7,847			5,295
Total expenses			119,209			12,335
Income (loss) before other income (loss)			55,847			(11,185)
Other income (loss)
Change in fair value of crypto assets held			(318)			(476)
Change in fair value of investments			8,289			-
Change in fair value of crypto assets borrowed			(11,809)			-
Change in fair value of warrant liability			(89,827)			1,419
Fees on crypto assets borrowed			(2,528)			-
Loss on issuance of warrants			-			(1,157)
Gain on acquisitions, net			-			1,229
Total other income (loss)			(96,193)			1,015
Net loss before provision for income tax			(40,346)			(10,170)
Provision for incomes tax			11,142			-
Net loss			$	(51,488)		$	(10,170)
Basic and diluted net loss per share			$	(0.39)		$	(0.13)
Basic and diluted weighted average number of common shares outstanding			131,588,580			79,356,838

SOURCE Voyager Digital (Canada) Ltd.

Related Links

https://www.investvoyager.com/