Best Crypto Stocks to Buy in Canada

Best Crypto Stocks to Buy in Canada

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Here are 5 of the best crypto stocks to buy in Canada:

1. HIVE Blockchain (HVBT)
2. Hut8 Mining (HUT)
3. Banxa Holdings (BNXA)
4. Coinbase Inc. (COIN)
5. MicroStrategy Inc. (MSTR)
 

Ticker Company Description Pros Cons
HIVE HIVE Blockchain A Bitcoin and Ether mining company Mines both BTC and ETH Faces immense competitive pressure
HUT Hut8 Mining A Bitcoin mining company Undervalued stock Faces immense competitive pressure
BNXA Banxa Holdings A fiat-to-crypto payment processor Revenue determined by crypto trading volume Micro-cap stock
COIN Coinbase Inc. Crypto trading platform One of the largest crypto trading platforms in the industry Faces immense competitive pressure
MSTR MicroStrategy Software company with large BTC holdings Largest corporate holder of BTC Not a crypto company or service provider

1. HIVE Blockchain

Hive Blockchain Technologies Ltd Logo

Hive Blockchain Technologies Ltd

HIVE
TSXV

$6.17 CAD

  • +0.46
  • 8.06%

Quote as of 07/22/2024 15:28 ET

  • $683,758,912 CAD

    Market Cap

  • 32.05x

    Enterprise Value to EBITDA

  • N/A

    Forward PE

Metrics as of 07/22/2024 11:20 ET


 

Vancouver-based HIVE Blockchain Technologies (TSXV:HIVE) (NASDAQ:HVBT) is a unique opportunity for crypto investors.

That’s because it’s one of the few multi-currency miners on the market.

The company primarily mines Bitcoin, but it also has Ether mining operations.

The firm’s mining facilities are spread across the world.

However, they’re primarily based in countries with stable governments, predictable regulations and access to clean energy.

Canada is the primary mining destination, but HIVE also has facilities in Sweden and Iceland.

Hive is also one of the few cryptocurrency miners with multiple digital assets on their balance sheet and completely renewable mining operations.

Additionally, 100% of its operations are powered by wind, solar, geothermal or hydroelectric sources.

At the time of writing, HIVE’s portfolio of digital assets may have lost some value since Bitcoin and Ether have both declined this year.

2. Hut8 Mining

Hut 8 Mining Corp Logo

Hut 8 Mining Corp

HUT
TSX

$28.01 CAD

  • +1.25
  • 4.67%

Quote as of 07/22/2024 15:28 ET

  • $2,360,135,168 CAD

    Market Cap

  • 8x

    Enterprise Value to EBITDA

  • N/A

    Forward PE

Metrics as of 07/22/2024 11:20 ET


 

Hut 8 Mining (TSX:HUT) (NASDAQ:HUT) is another crypto mining stock that should be on your radar.

Hut 8 specializes in cryptocurrency mining, primarily focusing on Bitcoin.

Founded in 2018, Hut 8 is one of North America’s largest and most innovative digital asset miners, with a particular emphasis on Bitcoin.

The company operates industrial-scale Bitcoin mining facilities in Alberta, Canada, leveraging the region’s low-cost electricity, primarily generated from renewable sources.

This strategic location also benefits from a cold climate, which is advantageous for the cooling requirements of mining hardware.

Hut 8’s business model revolves around the mining of Bitcoin.

The company has made significant investments in state-of-the-art mining equipment and technology to optimize its mining efficiency and reduce its environmental footprint.

Hut 8 is committed to sustainability and aims to create value through a balanced approach to digital asset mining and holding.

It not only mines Bitcoin but also holds a substantial portion of its earnings in Bitcoin, positioning itself to potentially benefit from the appreciation in Bitcoin’s value over time.

Hut 8 has also ventured into other blockchain and cryptocurrency-related services.

This includes hosting services for other miners and participating in decentralized finance (DeFi) initiatives.

3. Banxa Holdings

Banxa Holdings Inc. Logo

Banxa Holdings Inc.

BNXA
TSXV

$0.55 CAD

  • +0.01
  • 1.85%

Quote as of 07/22/2024 10:49 ET

  • $24,604,074 CAD

    Market Cap

  • N/A

    Enterprise Value to EBITDA

  • N/A

    Forward PE

Metrics as of 07/22/2024 11:20 ET


 

Banxa Holdings (TSXV:BNXA) offers a unique service for crypto companies across the world – regulatory technology or RegTech.

Essentially, the company handles all the compliance requirements in different jurisdictions to allow crypto companies an on-ramp for their customers.

In other words, it makes it easy for a crypto exchange or wallet service to convert fiat currencies into digital assets.

Banxa’s platform has been integrated with industry giants such as Trezor, Ledger, Binance, Bancor, Changelly, Huobi and ShapeShift.

These tech giants can accept payments from debit or credit cards and local bank transfers (such as Interac eTransfers) via Banxa’s platform.

Over the years the company has helped clear transactions collectively worth billions of dollars.

Investors may be underestimating the company’s value proposition, which is why this stock could be an ideal target for a contrarian investor.

4. Coinbase Inc.

Coinbase Global, Inc. Class A Common Stock Logo

Coinbase Global, Inc. Class A Common Stock

COIN
NASDAQ

$265.12 USD

  • +7.33
  • 2.84%

Quote as of 07/22/2024 15:29 ET

  • $63,305,232,384 USD

    Market Cap

  • 114.69x

    Enterprise Value to EBITDA

  • 57.41x

    Forward PE

Metrics as of 07/22/2024 11:20 ET


 

Coinbase Global Inc. (NASDAQ:COIN) is a leading cryptocurrency exchange platform based in the United States.

It is renowned for its user-friendly interface, making it accessible to both novice and experienced cryptocurrency traders and investors.

As a publicly traded company on the NASDAQ since April 2021, Coinbase has established itself as a significant player in the mainstream financial market, underlining the growing acceptance of cryptocurrencies.

At its core, Coinbase provides a platform for buying, selling, and storing various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others.

It caters to individual retail investors as well as institutional clients, offering a range of services tailored to each segment.

For retail customers, Coinbase offers a simple, easy-to-use interface for trading cryptocurrencies, along with educational resources to help users understand the market.

For institutional clients, Coinbase provides more advanced trading and custody services.

Coinbase has also expanded its services beyond just a trading platform.

It offers Coinbase Wallet, a self-custody wallet allowing users to store their own crypto assets.

Additionally, Coinbase has ventured into the decentralized finance (DeFi) space, enabling users to earn interest on their cryptocurrency holdings and participate in the broader DeFi ecosystem.

5. MicroStrategy

MicroStrategy Inc Logo

MicroStrategy Inc

MSTR
NASDAQ

$1794.96 USD

  • +16.46
  • 0.93%

Quote as of 07/22/2024 15:29 ET

  • $31,127,717,888 USD

    Market Cap

  • N/A

    Enterprise Value to EBITDA

  • N/A

    Forward PE

Metrics as of 07/22/2024 11:25 ET


 

Perhaps the most meme-worthy stock on this list is MicroStrategy Inc.(NASDAQ:MSTR).

You may not have heard of the company but you’ve certainly heard of its founder Micahel Saylor.

Saylor has been accumulating Bitcoin on the company’s balance sheet for years and is now considered the community’s top evangelist.

MicroStrategy has grown into a prominent player in the business intelligence (BI) sector, providing sophisticated software solutions that help organizations analyze internal and external data to make better business decisions.

In recent years, the company has adopted a unique financial strategy by converting a significant portion of its cash reserves into Bitcoin, viewing the cryptocurrency as a long-term store of value.

This move has positioned MicroStrategy as one of the most prominent corporate backers of Bitcoin, reflecting a broader trend of increasing interest in cryptocurrencies among institutional investors.

Key Considerations When Investing in Crypto Stocks

Crypto Stocks Can be Held in Registered Accounts: Cryptocurrencies such as Bitcoin and Ether cannot be held in government-registered accounts such as the Tax-Free Savings Account (TFSA) or the Registered Retirement Savings Plan (RRSP).

However, most of the stocks mentioned on this list, as well as, crypto exchange-traded funds can be held in these accounts.

That should allow you to mitigate the taxes on capital gains from crypto.

Stocks Add Another Layer of Risk: Cryptocurrencies are inherently risky.

However, corporations that provide services to this sector add another layer of risk.

The company’s margins, liabilities, borrowing cost and regulatory oversight are all factors that must be considered when investing in these crypto stocks.

Even crypto ETFs have additional risk factors such as the cybersecurity of their custodial services and the management fees on their units.

The Value of Digital Assets is Unpredictable: Some of the companies on this list have immensely valuable digital asset portfolios.

In fact, in some cases, the underlying BTC is worth more than the company itself.

However, the market value of digital assets is volatile and notoriously unpredictable.

Bitcoin has suffered double-digit drawdowns in the past and there’s a good chance it could see severe dips in the future.

Investing in a stock simply because of the value of its underlying digital assets is quite risky.

DISCLAIMER: This is not investment advice. Recommendations are for educational purposes only, presented as a path for you to further research. Please seek independent financial advice before making any financial decisions. PiggyBank is not liable for any investment decisions you make based on the information presented on this website.

Frequently Asked Questions

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Can you purchase crypto stocks in Canada?

Canada is one of the few countries that has embraced blockchain technology. There are several cryptocurrency service providers listed on the Toronto Stock Exchange. In fact, some of the world’s first crypto exchange-traded funds or ETFs were launched on the TSX. That means average Canadian investors can certainly buy and hold crypto stocks in their portfolio.

Are crypto stocks a good alternative to buying coins directly?

There’s no straightforward answer to this. Some stocks are trading at a discount to their digital asset value and could amplify returns over time through financial leverage. However, corporations also add several risk factors that must be considered. Whether or not a specific company’s stock is better than buying the company’s underlying BTC holdings depends on your investment style and objectives.

Contributors

Vishesh Raisinghani
AUTHOR

Vishesh Raisinghani

Vishesh Raisinghani is the founder of Sharpe Ascension - a financial content marketing agency based in Toronto. Born in Mumbai, India and graduated from the Manchester Metropolitan University, he has been investing in and writing about stocks since 2011.

His investments and research are focused on tech stocks, growth opportunities, cryptocurrencies, emerging markets, and real estate. His clients include hedge funds, family offices, publicly-traded companies and tech startups trying to reach their investors through online communications.

When he's not writing, he's usually cycling around Toronto, paddleboarding on Lake Ontario, reading a book on the beach, slurping beer on a patio or relentlessly tweeting random thoughts. Website | Follow Vishesh on Twitter.

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