Blockchains and cryptocurrencies are so intertwined that it’s often difficult for people to see them as independent technologies.
But it’s important to understand that a blockchain is a powerful technology that facilitates more than just cryptocurrencies.
Let’s go over the best blockchain stocks in Canada that you might use to capitalize on this new technology.
What Can A Blockchain Be Used For?
Currently, the mainstream use of a blockchain is cryptocurrencies. But there are several other areas where blockchains can be helpful.
For a nascent technology, having multiple use cases can be a significant advantage as it offers the technology more avenues to break out.
- Tracking financial transactions.
- Supply chain monitoring.
- Digital IDs.
- Copyright/Tracking the original owner (That’s how it’s used for NFTs).
These are just a few of the many potential uses of the blockchain.
Best Blockchain Stocks In Canada
There is a significant overlap between Blockchain and cryptocurrency stocks, especially mining stocks, since cryptocurrencies like Bitcoin and Ethereum cannot exist without blockchain.
But for this list, we’ve excluded most companies whose core focus is crypto mining. Those are some of the more prominent players in this industry. And the blockchain stocks left are mostly nano-cap companies.
1. Galaxy Digital Holdings Stock(TSX)
Galaxy Digital is the only mid-cap stock on this list and has a diversified operational focus. The company has five interdependent business segments that rely heavily on the blockchain.
These segments are crypto trading, mining, digital asset management, investment banking, and principal investing.
The company already has $1.7 billion under management and over 800 institutional trading counterparts. It’s a strong player in the crypto and, by extension, blockchain industry.
The stock has gone through several smaller and one massive growth spurt in the last five years. At its best, the stock grew by over 5,000% in less than two years (between Mar 2020 and Nov 2021).
2. DMG Blockchain Solutions Stock
DMG Blockchain is a vertically integrated blockchain company that offers a variety of solutions.
One of its business divisions, which focuses on data center hardware and monetization, leans more towards crypto than blockchain. But it has two other divisions, focusing solely on other blockchain applications.
One uses blockchain for forensics and data analytics, and the other develops and licenses proprietary blockchain software.
As a penny stock, it showed the potential of doubling its investors’ money several times in the last five years.
The peak growth phase between the pandemic-driven market crash and post-pandemic recovery pushed it up over 7,500% between Mar 2020 and Feb 2021. The diversified business model is an additional reason to consider this stock.
3. Wellfield Technologies Stock
Wellfield Technology is a Markham-based company whose primary focus is DeFi or Decentralized Financing.
It has two brands under the Wellfield banner – Seamless, a blockchain-agnostic DeFi ecosystem, which means it can work with almost any blockchain. It’s currently focusing on Ethereum’s liquidity pools.
The second brand is MoneyClip, a trading wallet that allows you to connect your banks to your blockchain. This connects to the company’s operations’ overall “blockchain for DeFi” theme.
4. Neptune Digital Assets Stock
Neptune Digital Asset has a diversified blockchain business with three main divisions: mining, staking, and DeFi; all three are sustained by blockchains.
It supports more than just the Bitcoin blockchain, even though its mining operations are limited to the lead cryptocurrency. It’s also engaged in blockchain research and operating profitable blockchain nodes.
This stock for this Vancouver-based company has been around since the beginning of 2018, and in one of its three most pronounced growth bouts since then, it returned over 1,500% between Nov 2019 and April 2021 to its investors.
5. Minehub Technologies Stock
Minehub Technologies explores a different side of blockchain – supply chain solutions.
It has developed a platform leveraging the power of blockchain’s immutability to improve mining and metals supply chains, which platform supports smart contracts, documents, tracking shipments, logistics, and even financial data.
This allows it to make supply chains more transparent and accessible and even leads to better ESG tracking.
The underlying business is quite different from mining and other common blockchain applications, so it may offer different growth opportunities as well.
6. Blockchaink2 Stock
Blockchaink2 is a small Calgary-based company that invests in blockchain businesses. So if you invest in Blockchaink2, you will essentially get exposure to multiple blockchain companies at once.
Its current portfolio is made up of four holdings. Amplify Gaming uses blockchain for the management and sales of a game for studios and other stakeholders.
The other three businesses are only tangentially related to blockchain, and one is a colocation facilities business that focuses on mining.
The company has been around for quite some time, and the stock predates the inception of crypto by over a decade.
Recently, with its focus turned to blockchain, the stock has performed quite similarly to most other crypto stocks. The most pronounced growth phase in the last five years was between Mar 2020 and Jan 2021 when the stock shot up 2,600%.
7. BlockMint Technologies Stock
BlockMint Technologies aims to create new, more optimized distributed ledger technologies. The idea is to make blockchain deployment even more decentralized than it currently is.
And one practical application that the company has developed following this aim is Minter Browser, which allows you to “mine” cryptocurrencies while you are simply using your computing power to browse the internet.
Note that while your computing power is used for mining, you don’t actually earn any cryptocurrencies. Instead, you earn carbon credits. You can also earn from your interest in any NFTs.
This penny stock has risen two times in the last five years. The first spike sent it up 900% (between Oct 2017 and Mar 2018), while the other one pushed the value up over 1,000% (between Dec 2019 and Jan 2021).
8. IBM Stock (NYSE)
IBM started as one of the largest tech companies in the world, a pioneer of modern computing technologies, and has always been at the forefront of technological innovation.
Even though it’s not purely a blockchain company, blockchain is one of the solutions it offers to its clients. IBM Blockchain is currently one of the company’s enterprise solutions divisions that offers supply chain, digital assets, and digital identity solutions via its blockchain technology.
Even though it hasn’t been much of a grower lately, IBM is the textbook definition of a blue-chip stock. And even if you don’t buy it for its capital appreciation potential, the high dividend yield is reason enough.
Is Blockchain A Good Investment?
Blockchains are a risky investment, even when compared to the rest of the tech sector. It’s tied to the crypto market, which has been known for its extreme volatility.
But it’s also because, as a new and disruptive technology, people are still wary about its mainstream adaption in the corporate and financial world.
But if you have enough risk tolerance and believe in blockchain technology’s potential, then it’s an excellent investment for you.
How Do I Invest In Blockchain In Canada?
Canadian stock markets are home to many publicly-traded blockchain and crypto mining companies. Investing in the stocks of these companies is the easiest way to invest in blockchain.
How To Buy Blockchain Stocks In Canada
The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:
- 105 commission-free ETFs to buy and sell
- Excellent customer service
- Top-notch market research tools
- Easy-to-use and stable platform
- Stock and ETF buys and sells have $0 trading fees
- Desktop and mobile trading
- Reputable fintech company
- Fractional shares available
To learn more, check out my full breakdown of the best trading platforms in Canada here.
Blockchain technology has the potential to disrupt the world just as radically (if not even more aggressively) as technologies like cloud, IoT, big data, and even Artificial Intelligence can.
Right now, the crypto mining segment of the industry is so large that it’s eclipsing the other potential avenues of blockchain.
But once other segments start getting more traction, new blockchain businesses might emerge and grow into the tech giants of the next decade. Some of the best blockchain stocks in Canada may have the potential to break out at an unprecedented scale.
So even if they don’t match your risk profile, it’s a good idea to keep an eye on these stocks.
And if you are more interested in investing in crypto companies, these crypto stocks are a great place to start.