Over the past few years, the cryptocurrency industry has become a major part of the mainstream financial world.
Canadian investors who wish to gain exposure to crypto like Bitcoin without the hassle of trading on a crypto exchange can turn to Bitcoin stocks in Canada.
Investing in Bitcoin stocks does require a higher risk appetite, and it helps to have some knowledge of the industry.
Investors can choose from Bitcoin mining stocks, blockchain stocks, and crypto exchanges to diversify their Bitcoin investments.
In this article, I’ll review my choices for the top 11 best Bitcoin stocks in Canada for September 2024.
Should You Invest in Bitcoin Stocks?
As far as cryptocurrencies go, Bitcoin is the king. It has the largest market capitalization of any crypto token, with a current value of $512 billion. Bitcoin has become integrated with financial platforms worldwide and is held by major companies like Tesla and Block.
Investing in Bitcoin stocks is a great way to diversify your portfolio while adding exposure to the world’s largest cryptocurrency.
Be warned that the crypto industry is volatile, and so too, are Bitcoin stocks. These stocks typically trade alongside the performance of Bitcoin’s price and can see massive swings. Bitcoin has seen its price rise by more than 60% so far in 2023 alone.
The Canadian Bitcoin industry has several companies that operate in the Bitcoin mining sector. These businesses revolve around creating more Bitcoin by solving complex mathematical problems with high-powered computers.
If you have a higher risk appetite and believe in Bitcoin as an alternative investment asset, then this article is for you. Here are the top 11 Bitcoin stocks in Canada that I will be discussing:
- HIVE Blockchain Technologies (CVE: HIVE)
- Bitfarms Ltd (TSE: BITF)
- Galaxy Digital Holdings (TSE: GLXY)
- Digihost Technology (CVE: DGHI)
- Hut 8 Mining Corp (TSE: HUT)
- Grayscale Bitcoin Trust (OTC: GBTC)
- Riot Blockchain Inc (NASDAQ: RIOT)
- Canaan Inc – ADR (NASDAQ: CAN)
- Coinbase Global Inc (NASDAQ: COIN)
- Argo Blockchain PLC – ADR (NASDAQ: ARBK)
- Marathon Digital Holding (NASDAQ: MARA)
Note that all the facts and figures are as of May 2023.
Best Bitcoin Stocks to Buy in Canada
1. HIVE Blockchain Technologies
Here are some key facts for HIVE:
- Ticker Symbol: CVE:HIVE
- Market Capitalization: $349 million
- 52-Week Trading Range: $1.85 – $9.70
- 5-Year Returns: -28.72%
- Industry: Bitcoin Mining
HIVE is a Vancouver-based Bitcoin and Ethereum mining company that was established in 1987 and trades on the Canadian Venture Exchange, the Frankfurt Exchange in Germany, and the NASDAQ exchange in the US.
It was the very first Bitcoin stock to be listed on a stock exchange in Canada when it went public in 2017. Since then it has returned 131% to investors.
The company operates several Bitcoin mining operations in Canada and across Scandinavia. HIVE uses 100% green and renewable energies to mine its Bitcoin.
2. Bitfarms Ltd
Here are some key facts for BITF:
- Ticker Symbol: TSE:BITF
- Market Capitalization: $374 million
- 52-Week Trading Range: $0.52 – $3.00
- 5-Year Returns: +23.08%
- Industry: Bitcoin Mining
BITF is a Toronto-based Bitcoin mining company that was established in 2017 and is dual-listed on the TSX and the NASDAQ.
This company operates over 50,000 Bitcoin mining rigs across nine different farms in four different countries. These include Canada, the US, Argentina, and Paraguay.
As of 2023, Bitfarm has mined over 21,000 BTC using renewable energies, making it one of the largest, vertically integrated Bitcoin mining companies in the world.
3. Galaxy Digital Holdings Ltd
Here are some key facts for GLXY :
- Ticker Symbol: TSE:GLXY
- Market Capitalization: $1.69 billion
- 52-Week Trading Range: $3.33 – $9.39
- 5-Year Returns: +83.86%
- Industry: Crypto Asset Management Firm
GLXY is a digital financial management company that is based out of New York City and was established in 2006.
The company operates a crypto asset management platform that holds over $2.1 billion in assets and supports the trading of over 100 different crypto assets.
It has five distinct synergistic business lines for clients that include trading, asset management, Galaxy ventures, investment banking, and Bitcoin mining.
4. Digihost Technologies
Here are some key facts for DGHI:
- Ticker Symbol: CVE:DGHI
- Market Capitalization: $56 million
- 52-Week Trading Range: $0.42 – $2.95
- 5-Year Returns: -91.99%
- Industry: Bitcoin Mining
DIGI was established in 2017 and is based out of Toronto, Ontario. The stock is dual-listed on both the CVE and the NASDAQ exchange.
While Digihost is primarily a Bitcoin mining company, it also owns proprietary software that provides customers with enterprise crypto accounting and other crypto-related services.
Its lone Bitcoin mining facility is located in Buffalo, New York, where Digihost operates about 12,000 Bitcoin mining rigs that use 90% emission-free energy.
5. Hut 8 Mining Corp
Here are some key facts for HUT:
- Ticker Symbol: TSE:HUT
- Market Capitalization: $593 million
- 52-Week Trading Range: $1.08 – $4.77
- 5-Year Returns: -32.24%
- Industry: Bitcoin Mining
HUT Is one of the more widely known Bitcoin mining companies, which was founded back in 2011 and is dual-listed on the TSX and the NASDAQ.
The company is building a diversified digital asset portfolio that includes recent investments in Web3 and high-performance data centers. All eight of its main facilities are located in Canada.
It currently holds a nest egg of 9,086 self-mined Bitcoin as of 2023. Hut is another Canadian Bitcoin miner that utilizes renewable energies to power its operations.
6. Grayscale Bitcoin Trust
Here are some key facts for GBTC:
- Ticker Symbol: OTC: GBTC
- Market Capitalization: $2.45 billion
- 52-Week Trading Range: $7.46 – $21.10
- 5-Year Returns: 15.87%
- Industry: Bitcoin Fund
Grayscale Bitcoin Trust is one of the popular products offered by the Grayscale crypto platform. It holds actual Bitcoin through the Coinbase Custody Trust Company.
This company also offers several other crypto trust funds to invest in, including Grayscale Ethereum Trust and Grayscale Solana Trust.
It also offers one of the first digital currency ETFs called the Grayscale Future of Finance ETF (NYSEARCA: GFOF). This ETF holds various crypto stocks, including Coinbase, Robinhood, and Block.
7. Riot Blockchain Inc
Here are some key facts for RIOT:
- Ticker Symbol: NASDAQ:RIOT
- Market Capitalization: $1.89 billion
- 52-Week Trading Range: $3.25 – $14.43
- 5-Year Returns: +46.31%
- Industry: Bitcoin Mining
RIOT is a Colorado-based Bitcoin mining company that was founded in 2000 and trades on the NASDAQ exchange.
This company currently holds 7,058 BTC on its balance sheet and has a future expected hash rate of 12.5 EH/S. The hash rate measures the computational power of the computers that are mining Bitcoin.
It owns North America’s largest Bitcoin mining facility located in Rockdale, Texas. This facility spans a total of 200 acres and is currently building a 265-acre facility in nearby Corsicana, Texas.
8. Canaan Inc – ADR
Here are some key facts for CAN:
- Ticker Symbol: NASDAQ:CAN
- Market Capitalization: $381 million
- 52-Week Trading Range: $1.87 – $4.54
- 5-Year Returns: -77.56%
- Industry: Bitcoin Mining Equipment
Canaan is an American Depository Receipt stock that is based in Beijing, China but trades on the NASDAQ exchange.
This company operates in the Bitcoin mining industry but is not a miner. It creates ASIC high-performance mining equipment, high-powered chips, and software services.
Its Avalon line of Bitcoin miners is second only to Antminers in the industry. Since China has distanced itself from cryptocurrencies, Canaan has also started to build chips for other technologies like artificial intelligence.
9. Coinbase Global Inc
Here are some key facts for COIN:
- Ticker Symbol: NASDAQ:COIN
- Market Capitalization: $13.3 billion
- 52-Week Trading Range: $31.55 – $116.30
- 5-Year Returns: -83.34%
- Industry: Crypto Trading Exchange
Coinbase is one of the world’s leading crypto trading exchanges. It was founded back in 2012 in San Francisco by Brian Armstrong.
As of the most recent quarter, Coinbase has nearly 100 million verified users across more than 100 different countries worldwide. It offers an entire ecosystem of financial products that include an NFT Marketplace, DeFi Staking, and a Visa Debit Card.
The platform ranks second only to Binance in terms of global crypto trading domination. With over 150 different cryptos supported for trading, Coinbase is a preferred platform for both new and experienced traders.
10. Argo Blockchain PLC – ADR
Here are some key facts for ARBK:
- Ticker Symbol: NASDAQ:ARBK
- Market Capitalization: $56.28 million
- 52-Week Trading Range: $0.36 – $6.95
- 5-Year Returns: -92.90%
- Industry: Bitcoin Mining Infrastructure
ARBK is a London, England-based Bitcoin mining company that was founded in 2017 and trades on both the NASDAQ and the LSE.
Argo’s main Bitcoin mining facilities are located in Texas and Quebec, where over 44,000 Bitcoin mining rigs are operating in a carbon-neutral environment.
This company has a very strong 54% mining margin and mined over 2,156 Bitcoin in the fiscal year 2022.
11. Marathon Digital Holdings
Here are some key facts for MARA:
- Ticker Symbol: NASDAQ: MARA
- Market Capitalization: $1.48 billion
- 52-Week Trading Range: $3.11 – $18.88
- 5-Year Returns: +64.77%
- Industry: Bitcoin Mining
Marathon Digital Holding is yet another Bitcoin mining firm that was founded in 2010 and is based out of Las Vegas, Nevada.
This company holds a treasury of 11,568 Bitcoin with a hash rate of 14.0 EH/s. Marathon operates 8 mining facilities, making it one of the largest Bitcoin mining companies in the world.
Marathon has 122,900 operational miners accounting for 4.0% of the entire Bitcoin network.
How To Invest in The Best Bitcoin Stocks in Canada
The great news is that these stocks can be bought on most stock trading platforms in Canada. Regarding stock investing, I prefer to save on trading fees and use one of Canada’s leading discount brokerages.
Questrade
Buying Bitcoin stocks on the largest discount brokerage in Canada is cheap and easy. Questrade offers stocks and ETF investing for Canadians for as low as $0.01 per share.
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Bitcoin Stocks vs Bitcoin Cryptocurrency
Investing in Bitcoin stocks and the actual Bitcoin cryptocurrency are similar, yet they differ greatly in terms of the assets you trade.
Bitcoin stocks trade on public stock exchanges like the TSX or the NASDAQ. You specify the number of shares you wish to buy through your stock brokerage and hold them in your account.
When it comes to investing in Bitcoin crypto, you can buy whole or fractional parts of the token on any crypto exchange. Each Bitcoin is made up of 100 million satoshis, which are named after the pseudonym of the founder of Bitcoin, Satoshi Nakamoto.
The value of Bitcoin is volatile, and the market can go through long periods of minimal price action, known as crypto winters.
Bitcoin is a completely digital asset, and cryptos have been known to be prone to malicious hackers. There are ways of storing your Bitcoin offline in cold storage rather than being connected to an internet account or wallet.
Top Bitcoin ETFs in Canada
Here are some of the best Bitcoin ETFs in Canada:
- Purpose Bitcoin ETF (TSE:BTCC)
- CI Global Asset Management Galaxy Bitcoin Fund (TSE:BTCX.B)
- The Bitcoin Fund (TSE:QBTC.U)
- Fidelity Advantage Bitcoin ETF (TSE:FBTC)
- Evolve Cryptocurrencies ETF (TSE:ETC)
Are Bitcoin Stocks a Good Investment?
Bitcoin stocks can be a great investment if you have the risk appetite for it. Just know that before you buy your first Bitcoin stock, you could see some wild price swings.
A prime example of this volatility is the 5-year returns of the 11 Bitcoin stocks discussed earlier in this article. These returns ranged from -92% to +83%.
If you decide to invest in Bitcoin stocks, I recommend allocating only a small portion of your portfolio to them.
With that being said, this article is not meant to be taken as financial advice. It is merely an introduction for investors to the Canadian Bitcoin stock sector.
Conclusion
As time passes, Bitcoin will likely become a more prominent part of the global financial industry.
It has been held on the balance sheets of major corporations, including Tesla, Block, and Microstrategy. Bitcoin has also been added as an investment asset at major US banks like JPMorgan Chase, Morgan Stanley, and Goldman Sachs.
There is a popular saying in the crypto industry: “we are still early.” This alludes to the global acceptance and integration of Bitcoin in the future.
If you believe in Bitcoin for the long term, investing in Canadian Bitcoin stocks can be a great way to do so.
FAQs
In terms of the largest crypto company on the TSX, you’ll want to take a look at Galaxy Digital Holdings. There are several strong Bitcoin mining companies, including HIVE Blockchain and Hut 8 Mining as well.
If you are determined to invest in cryptocurrencies, then Bitcoin and Ethereum are likely the safest way to go. You can also invest in Bitcoin or crypto stocks, ETFs, and even alternative assets like NFTs.
On Canadian stock exchanges, you can invest in NFT-related companies like Bitfarms or Digihost Technology. If you want to look at US-listed stocks, companies like Coinbase offer exposure to NFTs.
For pure-play Bitcoin stocks, I would look to mining stocks that hold Bitcoin as an investment as well. The previously mentioned HIVE and HUT 8 are great stocks to add as exposure to Bitcoin.
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