Do you want to invest in cryptocurrencies like Bitcoin or Ethereum? Over the past few years, crypto has gone mainstream and has gained immense popularity.
However, not everyone wants to invest in such a volatile asset. Luckily for Canadian investors, there are plenty of crypto-related companies that trade on the TSX and TSXV exchanges.
Rather than investing directly in cryptocurrencies, you can buy stock of crypto mining companies, blockchain-based companies, and others that operate in the crypto industry.
For most investors, cryptocurrencies will likely make up a small portion of your overall investment portfolio. They are riskier assets that can experience high levels of volatility.
In this article, I review 10 of the best crypto stocks in Canada for December 2024.
Should You Invest in Crypto Stocks?
This is purely up to your own personal risk tolerance. When you consider investing in cryptocurrencies, you will need to acknowledge that the investment could potentially go to zero.
Investing in blue-chip crypto like Bitcoin will help mitigate that risk, and buying stocks of crypto-based companies is safer.
Stocks of companies like crypto miners will often rise alongside the prices of the crypto market. On the flip side, they will also fall sharply when the crypto market is in a downtrend.
When you invest in crypto mining companies, consider that they also hold the cryptos they mine as their own investment.
Crypto exchanges rely on transaction fees for revenues. When the crypto market is down, transactions naturally taper off. This will also cause a drop off in revenue as well.
Here is a list of the top 10 crypto stocks for Canadian investors:
- Galaxy Digital Holdings (TSE: GLXY)
- Hut 8 Mining Corp (TSE: HUT)
- Bitfarms Ltd (TSE: BITF)
- HIVE Blockchain Technologies (CVE: HIVE)
- DMG Blockchain Solutions Inc (CVE: DMGI)
- BIGG Digital Assets Inc (CNSX: BIGG)
- Marathon Digital Holdings (NASDAQ: MARA)
- Block Inc (NYSE: SQ)
- Coinbase (NASDAQ: COIN)
- Grayscale Bitcoin Trust (OTC: GBTC)
Best Crypto Stocks to Buy in Canada
1. Galaxy Digital Holdings (TSE:GLXY)
Here are some key facts for GLXY:
- Market Cap: $2.58 billion
- Industry: Crypto Trading Platform
- PE Ratio: N/A
- 52-week Trading Range: $3.32 – $24.58
- 5-Year Total Return: 67.37%
GLXY is a New York-based digital asset firm that was established in 2006 and trades on the Toronto Stock Exchange.
This company offers full financial services for cryptocurrencies and operates within five specific business lines: trading, asset management, investment banking, mining, and ventures.
As of February 2023, Galaxy has $1.9 billion in assets under management and partners with some of the largest institutions in the world, including Bloomberg, Morgan Stanley, Goldman Sachs, and Invesco.
2. Hut 8 Mining Corp (TSE:HUT)
Here are some key facts for HUT:
- Market Cap: $526 million
- Industry: Crypto Miner
- PE Ratio: N/A
- 52-week Trading Range: $1.08 – $7.37
- 5-Year Total Return: -28.74%
HUT is a Toronto-based crypto mining company that was founded in 2011 and trades on the TSX.
This company exclusively mines Bitcoin at its three mining locations across Canada. As of January 2023, Hut has 9,086 mined Bitcoin in reserve and produces margins of between 35-40% annually.
Hut 8 Mining is also getting involved in the future of the Web3 industry. The company operates five data centers for Web3 and gaming across BC and Ontario.
3. Bitfarms Ltd (TSE:BITF)
Here are some key facts for BITF:
- Market Cap: $312.28 million
- Industry: Crypto Miner
- PE Ratio: N/A
- 52-week Trading Range: $0.52 – $5.05
- 5-Year Total Return: -39.91%
BITF is a Toronto-based Bitcoin mining company founded in 2017 and trades on the TSX.
Bitfarms operates multiple mining locations across Canada, the US, and Latin America. It operates over 50,200 mining rigs across those locations that have mined over 20,000 BTC since inception.
As of the end of March 2023, Bitfarms mines about 15.6 BTC per day. The company mined 1,434 BTC in the fourth quarter of 2022.
4. HIVE Blockchain Technologies (CVE:HIVE)
Here are some key facts for HIVE:
- Market Cap: $356.9 million
- Industry: Crypto Miner
- PE Ratio: N/A
- 52-week Trading Range: $1.85 – $14.55
- 5-Year Total Return: -26.84%
HIVE Is a Vancouver-based crypto mining company that was founded way back in 1987. It trades on the Canadian Venture Exchange and the NASDAQ. It was the first crypto miner to be listed as a public company in Canada.
The company uses 100% green energy to mine both Bitcoin and Ethereum. It operates mining locations across Canada and Scandinavia as well, where colder temperatures require less energy to run mining rigs.
It previously announced an exclusive partnership with Intel, which will be providing Hive with high-performance ASIC chips to power its custom-built mining equipment.
5. DMG Blockchain Solutions (CVE:DMGI)
Here are some key facts for DMGI:
- Market Cap: $52.7 million
- Industry: Crypto Miner
- PE Ratio: N/A
- 52-week Trading Range: $0.13 – $0.72
- 5-Year Total Return: -41.67%
DMG is a British Columbia-based blockchain and crypto mining company founded in 2011 and trades on the Canadian Venture Exchange.
The company recently built one of Canada’s largest Bitcoin mining facilities in Christina Lake, BC. It has a maximum power capacity of 85 Megawatts and is expected to increase DMG’s mining abilities immensely.
It stands out from other crypto miners because of the additional services it provides. DMG acts as a consultant and advisor for other miners and provides audits, impairment analysis, and even forensic investigations of nefarious crypto wallet transactions.
6. BIGG Digital Assets (CNSX:BIGG)
Here are some key facts for BIGG:
- Market Cap: $79.9 million
- Industry: Crypto Infrastructure and Investing
- PE Ratio: N/A
- 52-week Trading Range: $0.22 – $0.80
- 5-Year Total Return: -20.00%
BIGG is a Vancouver-based digital asset investing company founded in 2014 and trades on both the CNSX and the OTCQX exchanges.
This company operates several crypto-related subsidiaries, including the crypto trading platform Netcoins, Metaverse studio TerraZero, and digital investigation software company QLUE.
With 200 Bitcoins on its balance sheet, BIGG Digital Assets is positioned as a leader in several crypto-related industries.
7. Marathon Digital Holdings
Here are some key facts about MARA:
- Market Cap: $1.33 billion
- Industry: Crypto Miner
- PE Ratio: N/A
- 52-week Trading Range: $3.11 – $31.38
- 5-Year Total Return: 75.88%
Marathon Digital Holdings is a Las Vegas-based crypto mining company established in 2010.
As of the fourth quarter of 2022, Marathon had over 69,000 Bitcoin miners in operation. In total, it holds over 4,200 BTC on its balance sheet.
The company operates nearly 100% carbon-neutral mining facilities in Texas, Ohio, and North Dakota. Marathon is currently seeking out some international locations for its next mining facilities.
8. Block Inc
Here are some key facts for SQ:
- Market Cap: $40 billion
- Industry: Digital Payment Solutions/Fintech
- PE Ratio: N/A
- 52-week Trading Range: $51.34 – $147.62
- 5-Year Total Return: 44.95%
Block Inc, formerly known as Square, is a mobile payment and point-of-sale provider that was founded in 2009. The company was founded by former Twitter CEO, Jack Dorsey.
The company was in the news recently for being a target of short-seller Hindenberg Research. This short report caused a 20% decline in the stock’s price in a single day of trading.
It is known for its popular Cash App mobile payments app. The Cash App allows users to buy, trade, and make purchases in Bitcoin. Block is also rumoured to be creating its own personal Bitcoin miner for use at home.
9. Coinbase (NASDAQ:COIN)
Here are some key facts for COIN:
- Market Cap: $15.12 billion
- Industry: Crypto Exchange
- PE Ratio: 6.68
- 52-week Trading Range: $31.55 – $206.33
- 5-Year Total Return: -80.91%
Coinbase is a California-based, global crypto exchange that was founded in 2012 and trades on the NASDAQ.
It is one of the world’s largest crypto and NFT exchanges, with over 110 million verified users across more than 100 different countries. Coinbase also has 245,000 ecosystem partners.
The platform supports the trading of more than 250 different cryptocurrencies with over 450 different trading pairs. Coinbase sees more than $200 billion in quarterly average trading volume.
10. Grayscale Bitcoin (OTC:GBTC)
Here are some key facts for GBTC:
- Market Cap: $10.97 billion
- Industry: Bitcoin Trust
- PE Ratio: N/A
- 52-week Trading Range: $7.46 – $32.96
- 5-Year Total Return: 50.14%
Grayscale Bitcoin Trust is the flagship fund of the Grayscale asset manager. It was founded in 2013 and is based out of New York.
The GBTC is an interesting asset class as it has not formally been deemed an ETF by the SEC. Investors can buy shares of GBTC, which provide a comparative exposure to Bitcoin.
Grayscale offers 17 trusts, including Solana, Ethereum, Chainlink, and Litecoin.
How to Invest in the Best Crypto Stocks in Canada?
Any of these Canadian crypto stocks can be bought on a brokerage that allows access to CVE and OTC stocks. Here is my favourite discount brokerage where I save on trading fees:
Questrade
The oldest and largest discount brokerage in Canada, Questrade provides several different investing assets like stocks, ETFs, and even options.
Buy Canadian crypto stocks on Questrade for as little as $0.01 per share.
Questrade
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Get $50 trade credit with $250 funding
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Transfer fees waived
Crypto Stocks vs Crypto Coins
Investing in crypto stocks is like investing in any other type of stock: you can find them on a stock brokerage and buy shares of the company.
But when you invest in crypto coins, you have to go through a crypto exchange like CoinSmart, Wealthsimple Crypto, or Newton.
You can transfer in fiat currency or other cryptocurrencies to your crypto exchange account. From here, you can buy and sell any crypto coins that are offered.
Buying crypto coins is easy because you do not need to buy whole coins and can just dollar cost average into different cryptos.
The top crypto exchange in Canada is Bitbuy.
Bitbuy Crypto Exchange
Get a $50 bonus if your initial deposit exceeds $250
Trade over 50 popular coins
Great for new & advanced traders
0% to 2% trading fee
Are Crypto Stocks a Good Investment?
As you can see from the ten crypto stocks I listed, the 5-year returns vary significantly from stock to stock.
Investing in crypto stocks comes with a higher risk appetite since there is a large amount of volatility in the industry.
While you can see massive gains, you can also be subject to massive losses. Crypto stocks typically do not recover as well as crypto coins do.
With that being said, this article should not be taken as investment advice but rather simply an introduction to the best Canadian crypto stocks.
Conclusion
Cryptocurrencies are a polarizing subject in the investment community. Some investors swear by them, while others think they are a Ponzi scheme.
If you want some exposure, dedicate a small portion of your account to crypto stocks. As noted, they can be volatile, and you can lose most of your initial investment.
You can invest in crypto miners, crypto exchanges, and even crypto software. Whatever your preference is, buying these stocks on a discount brokerage like Wealthsimple Trade or Questrade can help you save on fees.
FAQs
Galaxy Digital is an excellent play on institutional crypto investing and has seen an excellent 5-year return compared to other crypto stocks. In terms of miners, HIVE Blockchain is interesting because it mines both Bitcoin and Ethereum.
If you want to invest in cryptocurrencies, the safest plays are the blue-chip cryptos of Bitcoin or Ethereum. Any other Altcoins can be considered a riskier investment.
There are not many pure-play NFT stocks in Canada. Bitfarms, Digihost Technology, Banxa, and Coinbase are all involved in NFTs.
Grayscale Bitcoin is probably the closest thing to a direct investment in Bitcoin. Other than that, most crypto miners and exchanges will trade in sympathy to the price of Bitcoin.
Related:
- Top 10 Canadian Tech Stocks
- 10 Top Natural Gas Stocks
- How to Buy Crypto on Questrade
- Best Lithium Stocks in Canada
Disclaimer: Cryptocurrency is a volatile and speculative investment. If you decide to invest, we recommend you do your own research and only commit funds you can afford to lose. The author may own one or more of the crypto assets mentioned in this article.
