Hardware crypto wallet Arculus will assist its owner CompoSecure’s (CMPO) earnings as it looks for to make headway on freezer rivals such as Ledger and Trezor, Needham equity research study expert John Todaro informed customers in a note Friday.
Cold storage is a method of holding cryptocurrency tokens offline instead of on an exchange.
Todaro sees Arculus turning into one of the leading 3 biggest crypto hardware wallet companies by the end of this year, and anticipates ongoing product earnings development from this section throughout 2023.
CompoSecure might offer 160,000 Arculus systems this year and 840,000 systems in 2023, price quotes Todaro. While Ledger and Trezor will offer more wallets over those years thanks to client “stickiness,” Todaro believes the quickest development will remain in Arculus.
Todaro and group see ongoing development in personal custody, anticipating a 6.4% three-year compounded development rate for bitcoin (BTC) addresses, and a 32.4% development rate for Ethereum-based addresses.
Todaro started CompoSecure with a buy score and $14 rate target, recommending more than 80% upside from existing levels. Shares are down about 7% up until now in 2022.
Read more: Trezor Backtracks on ‘Travel Rule’ App for Self-Hosted Crypto Wallets Amid Uproar