8 Best Bitcoin Stocks In Canada 2022: Invest In The #1 Crypto

Bitcoin is the number one cryptocurrency in more ways than one. It started the whole asset class and paved the way for thousands of other cryptocurrencies to date.

It has also attracted the most dollar value, and in early April 2022, Bitcoin’s market cap made up roughly 41.3% of the valuation of the entire crypto market.

Even though its appreciation potential has waned a bit from its early days, Bitcoin is still a viable investment.

However, you may want to invest in this asset class through the best Bitcoin stocks in Canada.

Best Bitcoin Stocks In Canada

Investing In Bitcoin Stocks In Canada?

Before you invest in Bitcoin stocks in Canada, the first question you may ask yourself is why Bitcoin stock? Why not invest directly in Bitcoin?

One of the main reasons is that you cannot put the Bitcoin you buy in tax-sheltered accounts like the RRSP or TFSA. The stocks may also offer better returns than the underlying asset: Bitcoin.

There are a few things you need to know about Bitcoin stocks in Canada:

  • Bitcoin stocks can be quite volatile, thanks to the underlying asset.
  • Their growth and fall cycles may lag behind Bitcoin’s, so if you keep an eye on the cryptocurrency, you may be able to buy Bitcoin stocks just before a growth/recovery cycle begins or sell right before the stock starts dipping.
  • As part of the tech sector, Bitcoin stocks might get influenced by the sector’s dynamics as well.

6 Best Bitcoin Stocks in Canada (And 2 In The US)

6 Best Bitcoin Stocks in Canada (And 2 In The US)

Canada is home to a decent number of publicly-traded Bitcoin miners and other Bitcoin stocks. Not that we have focused primarily on Bitcoin stocks, so you may not find crypto stocks with a broader scope on this list.

The following companies are arranged by market cap. All the following information is updated for March 2022.

1. Hut 8 Mining Stock

Market: TSX
Ticker: HUT
Industry Niche: Bitcoin Mining

Hut 8 is one of the largest crypto mining companies in Canada, both by market cap and mining capacity.

It has two mining sites in Alberta and one in Ontario that it uses to mine Bitcoins itself and also offers to clients under its white label hosting services.

The company has over 6,115 self-coined Bitcoins, one of the highest numbers for any miner across the globe. It has also diversified into data centers (five) that business clients from a variety of industries use.

Hut 8 stock is not very old, and it only started trading on the TSX in 2016.

Following the up and down pattern of Bitcoin, though not quite accurately, the stock has gone through several growth cycles, the best of which was about 2,700% stock appreciation.

2. HIVE Blockchain Technologies Stock

HIVE Blockchain Technologies Stock

Market: TSXV
Ticker: HIVE
Industry Niche: Bitcoin And Ethereum Mining

HIVE Blockchain focuses on Both Bitcoin and Ethereum, and the diversified mining approach makes it slightly more stable than other Bitcoin stocks on this list that focus primarily on one resource.

The company has both national and international mining operations, and apart from Canada, it takes advantage of the renewable (and modestly priced) electricity of Iceland and Sweden.

This international exposure sets it apart from local miners. The company has steadily grown its mining operations and mining capacity over the years.

Its stock has gone through multiple growth cycles since its inception. The two most prominent of which pushed the value up over 15,000% and 6,700%, respectively, in under two years.

So if you can buy it low, ideally under $1 per share, you should definitely go for it.

3. Bitfarms Stock

Market: TSXV
Ticker: BITF
Industry Niche: Bitcoin Mining

As one of the largest Bitcoin miners in North America, Bitfarms focuses on low-cost mining.

The premise is that stretching the profit margin requires lowering the cost of mining one Bitcoin as much as possible and selling it for as high as possible.

However, the cost has more to do with just brute computing power, as the more Bitcoins are mined, the higher the cost of mining (due to complexity and time) becomes.

Its mining operations are also quite well-diversified (geographically), and it has facilities in US and Paraguay, but most are in Canada (Quebec). Its Argentina facility will soon come online as well.

Since it only started trading on the TSX in 2019, it has only gone through one major growth phase, which resulted in about 2,800% growth at its best.

4. Digihost Technology Stock

Digihost Technology Stock

Market: TSXV
Ticker: DGHI
Industry Niche: Bitcoin Mining And Blockchain Technology

Digihost is headquartered in Canada and based in the US. It has one main production facility where it hosts about 11,800 individual miners, and its capacity is significantly lower than Hut 8, HIVE, or Bitfarms.

Still, its mining capability cannot be completely disregarded, and it holds about 776 Bitcoin and over a thousand Ethereum coins. These were not mined but rather bought using the Bitcoin inventory of the miner.

Digihost is easily the most downtrodden and overvalued Bitcoin miner on this list, and its recent growth has been quite paltry compared to others.

But this also gives it the opportunity to offer the kind of growth others might not since they are unlikely to fall near their all-time lows.  

5. Cathedra Bitcoin Stock

Cathedra Bitcoin Stock

Market: TSXV
Ticker: CBIT
Industry Niche: Bitcoin Infrastructure Development

This micro-cap Bitcoin stock is all about Bitcoin mining infrastructure, i.e., mining rigs.

But it’s also in the mining business and has significant power/mining capacity at its disposal thanks to its US-based sites, especially for a company of its size, especially if we add the contracted hash rate.

In fact, its hash rate (mining power) to its enterprise value ratio is better than most other mainstream publicly-traded miners.

It’s following a strict “Hodling” policy which means it holds all the Bitcoin it mines (they are not invested back into the business).

Its two major growth phases in the last eight years pushed the valuation up about 1,980% and over 730%, respectively.  

6. Bitcoin Well Stock

Bitcoin Well Stock

Market: TSXV
Ticker: BTCW
Industry Niche: Non-Custodial Financial Services

While there is literally Bitcoin in the name, Bitcoin Well caters to other cryptocurrencies as well. It offers non-custodial Bitcoin exchange services, which is ideal for people who which to retain complete control of their Bitcoin holdings.

It runs a network of Bitcoin ATMs and other locations where individuals can go and exchange their Bitcoin for cash.

The network includes over 200 of the company’s own Bitcoin ATMs (the second largest in Canada), and it expects to grow its partner network as well.

The stock only started trading on the junior exchange in July 2021, and since its inception, it has mostly gone downhill.

However, its perfectly positioned to take advantage of mainstream Crypto adaption when more and more people would need those ATMs to convert cryptocurrencies for physical cash.

Apart from Canadian Bitcoin stocks, there are two US Bitcoin stocks that you might consider investing in as well.

7. Riot Blockchain Stock

Riot Blockchain Stock

Market: NASDAQ
Ticker: RIOT
Industry Niche: Bitcoin Mining

Riot is a US-based Bitcoin mining giant with a slightly more hash rate than most Canadian mining giants at its disposal.

What’s more, the operations are significantly less power-hungry, and this low power consumption, especially if it’s at a competitive rate, can push the company’s organic profitability way higher.

And it’s expected to grow its capacity by a significant margin in the coming years.

The stock has been around for longer than actual Blockchain has, and it is far away from its glory days. However, the stock still grew about 620% and 10,000% in the last five years.

8. Marathon Digital Holdings Stock

Marathon Digital Holdings Stock

Market: NASDAQ
Ticker: MARA
Industry Niche: Bitcoin Mining

Marathon Digital Holdings, instead of building its own facilities, have entered a colocation agreement and only has one major mining operation.

It’s running at optimal capacity and at max and can be stretched up to house over 30,000 state-of-the-art mining rigs, which can push its hash rate and mining capacity higher than what Riot Blockchain has at its disposal right now.

Despite its colocation agreement, the company retains full ownership of all mined Bitcoins.

Marathon has also seen two major growth phases in the last five years. The first one resulted in over 800% stock appreciation and the other one in over 17,000% (at its best).

What Is The Best Stock For Bitcoin In Canada?

The three best stocks for Bitcoin in Canada would be HIVE Blockchain, Hut 8 Mining, and Bitfarms.

How To Buy Bitcoin Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

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To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

Bitcoin’s volatility seeps into the stocks as well, and it’s this volatility that’s responsible for these massive growth surges and unexpected falls.

The risk with the best Bitcoin stocks in Canada might be much higher than what it would be for more conservative asset classes, but the return potential is adequately proportional.

You can spread out from the Bitcoin domain to include crypto stocks in your portfolio as well.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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