8 Best Bitcoin Stocks In Canada (Oct 2022)

Looking to invest in Bitcoin but don’t want the hassle of buying it directly?

Buying Bitcoin stocks might be a better option for you.

Let’s go over some of the best Bitcoin stocks in Canada below, and see if it’s a good fit for you.

Why Invest In Bitcoin Stocks In Canada?

Before you invest in Bitcoin stocks, the first question you may ask yourself is why? 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. Bitcoin stocks is also a lot more accessible to your average investor and is available to purchase on most trading platforms in Canada.

Here are a few additional 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 can lag significantly behind Bitcoin’s.
  • As part of the tech sector, Bitcoin stocks might get influenced by the sector’s dynamics as well.

Best Bitcoin Stocks in Canada

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

1. Hut 8 Mining Stock

  • Market: TSX
  • Ticker: HUT.TO
  • Industry Niche: Bitcoin Mining
  • Forward Dividend Yield: N/A
  • Market Cap: $546.28 Million
  • Forward P/E Ratio: -11.71
  • Average Analyst Rating: 2.0 - Buy

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.

2. HIVE Blockchain Technologies Stock

HIVE Blockchain Technologies Stock
  • Market: TSXV
  • Ticker: HIVE.V
  • Industry Niche: Bitcoin And Ethereum Mining
  • Forward Dividend Yield: N/A
  • Market Cap: $448.77 Million
  • Forward P/E Ratio: 2.78
  • Average Analyst Rating: 1.7 - Buy

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.

3. Bitfarms Stock

  • Market: TSXV
  • Ticker: BITF.TO
  • Industry Niche: Bitcoin Mining
  • Forward Dividend Yield: N/A
  • Market Cap: $321.89 Million
  • Average Analyst Rating: 2.0 - Buy

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.V
  • Industry Niche: Bitcoin Mining And Blockchain Technology
  • Forward Dividend Yield: N/A
  • Market Cap: $27.69 Million
  • Forward P/E Ratio: 6.67
  • Average Analyst Rating: 2.0 - Buy

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.V
  • Industry Niche: Bitcoin Infrastructure Development
  • Forward Dividend Yield: N/A
  • Market Cap: $19.28 Million

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.V
  • Industry Niche: Non-Custodial Financial Services
  • Forward Dividend Yield: N/A
  • Market Cap: $8.72 Million

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.

It’s perfectly positioned to take advantage of mainstream Crypto adaption when more and more people would need those ATMs to convert cryptocurrencies for physical cash.

American Bitcoin Stocks

7. Riot Blockchain Stock

Riot Blockchain Stock
  • Market: NASDAQ
  • Ticker: RIOT
  • Industry Niche: Bitcoin Mining
  • Forward Dividend Yield: N/A
  • Market Cap: $1.09 Billion
  • Forward P/E Ratio: 12.29
  • Average Analyst Rating: 1.8 - Buy

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.

8. Marathon Digital Holdings Stock

Marathon Digital Holdings Stock
  • Market: NASDAQ
  • Ticker: MARA
  • Industry Niche: Bitcoin Mining
  • Forward Dividend Yield: N/A
  • Market Cap: $1.50 Billion
  • Forward P/E Ratio: 13.38
  • Average Analyst Rating: 2.1 - Buy

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?

Our picks for 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:

Readers Choice
Qtrade
Qtrade
  • 105 commission-free ETFs to buy and sell
  • Excellent customer service
  • Top-notch market research tools
  • Easy-to-use and stable platform 
Low Fees
Wealthsimple Trade
Wealthsimple Trade
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
Well-Rounded
Questrade
Questrade
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

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

Conclusion

Best Bitcoin Stocks In Canada

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. As always, we recommend using caution when investing in any type of cryptocurrency.

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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