On Friday, Needam’s equity research analyst John Todaro informed the clients that the hardware crypto wallet Arculus, the owner of CompoSecure (NASDAQ), plans to compete with cold storage competitors. It would boost earnings. Cold storage is a way to store cryptocurrency tokens offline rather than on an internet-connected exchange.
Todaro expects Arculus to become one of the top three crypto hardware wallet providers by the end of this year. This segment is expected to generate significant revenue by 2023. Todaro estimates that CompoSecure will sell 160,000 Arculus units this year and could sell 840,000 units in 2023. Ledger and Trezor have sold more wallets in recent years, thanks to their customers’ “stickiness”, but Todaro believes that the Arculus can beat them.
Todaro launched CompoSecure with a purchase valuation and target price of USD 14. This suggests an increase of more than 80 percent from the current level. So far in 2022, the market share has decreased by about 7 percent.
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