BANXA Holdings Inc (TSX-V:BNXA) is a global Payments Service Provider (PSP) serving the digital asset/cryptocurrency industry. It does so by using its platform as a “bridge” between the fiat/cash/banking system and the digital asset/exchange system. The company is headquartered in Australia where it has pioneered easy to access, local payments platforms for retail investors to acquire cryptocurrencies. More recently it has expanded its infrastructure to the B2B market, partnering with the leading cryptocurrency exchanges, including OK Group, Binance, KuCoin and EDGE Wallet. It has also expanded to the UK, the European Union, USA and Canada. Since the launch of its flagship B2B product, BANXA has seen significant growth in Total Payments Volumes (TPV), including 1,000% growth in January 2021 TPV to A$55m. BANXA listed on the Toronto Stock Exchange on January 6, through a reverse merger with Toronto-listed A-Labs Capital I Corp, with a market capitalisation at listing of C$40.7m. We initiate coverage of BANXA with a base case discounted cashflow derived valuation of C$3.47/share, which implies a CAGR of 36% in 10-year free cashflows, in a sector that is forecasted to generate >50% CAGR over the same period.
03 Feb 2021
Providing secure access to digital assets
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Providing secure access to digital assets
BANXA Holdings Inc (TSX-V:BNXA) is a global Payments Service Provider (PSP) serving the digital asset/cryptocurrency industry. It does so by using its platform as a “bridge” between the fiat/cash/banking system and the digital asset/exchange system. The company is headquartered in Australia where it has pioneered easy to access, local payments platforms for retail investors to acquire cryptocurrencies. More recently it has expanded its infrastructure to the B2B market, partnering with the leading cryptocurrency exchanges, including OK Group, Binance, KuCoin and EDGE Wallet. It has also expanded to the UK, the European Union, USA and Canada. Since the launch of its flagship B2B product, BANXA has seen significant growth in Total Payments Volumes (TPV), including 1,000% growth in January 2021 TPV to A$55m. BANXA listed on the Toronto Stock Exchange on January 6, through a reverse merger with Toronto-listed A-Labs Capital I Corp, with a market capitalisation at listing of C$40.7m. We initiate coverage of BANXA with a base case discounted cashflow derived valuation of C$3.47/share, which implies a CAGR of 36% in 10-year free cashflows, in a sector that is forecasted to generate >50% CAGR over the same period.