7 Best Crypto Stocks In Canada (Sep 2022): A Disruptive Technology

Bitcoin has become comparable to asset classes like gold, which is astounding considering that humanity has been mining gold for millennia and cryptocurrencies for less than fifteen years.

And that’s not including the infrastructure and equipment market around crypto mining, which is easily in billions.

Despite its volatility, cryptocurrencies and the underlying technologies (blockchain) are not going anywhere any time soon.

Check out the best crypto stocks in Canada below to see if this risky asset class is right for you.

What Do You Need To Know About Crypto Stocks?

The first question most people interested in crypto stocks have is that wouldn’t it be better to buy the cryptocurrency itself directly instead of through a stock.

But there are a few reasons crypto stocks might be preferred over cryptocurrencies:

  • They can be kept in tax-sheltered accounts (TFSA and RRSPs).
  • Stock investing is familiar, and you may not have to invest anything in their safety like you might do with crypto assets (cold/hot wallets).
  • Cryptocurrencies may face some regulatory challenges that crypto stocks might not.
  • You might not want direct exposure to a single coin, and buying one crypto stock can spread out your risk.
  • You want to invest in other aspects of cryptocurrency technology, such as crypto mining, without actually having to set up your own rig.

Best Crypto Stocks In Canada

There is a decent variety of crypto stocks in Canada. Most stocks represent publicly-traded crypto (primarily Bitcoin) mining companies, but there are some other crypto-related businesses as well.

1. Galaxy Digital Holdings Stock

Galaxy Digital Holdings Stock
  • Market: TSX
  • Ticker: GLXY.TO
  • Industry Niche: Services related to digital assets eco-system
  • Forward Dividend Yield: N/A
  • Market Cap: $112.32 Billion
  • Forward P/E Ratio: 12.47
  • Average Analyst Rating: 2.5 - Buy

Galaxy Digital is one of the few crypto companies with a comprehensive range and reaches in the crypto market.

While it’s also engaged in mining, its capabilities span far wider. It offers investment banking and asset management services focused on crypto assets.

The idea is that when crypto becomes truly commonplace, Galaxy Digital will be there to offer the digital/crypto version of conventional financial services to both B2B and B2C customers.

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: $442.50 Million
  • Forward P/E Ratio: 2.76
  • Average Analyst Rating: 1.7 - Buy

HIVE has the distinction of being the first publicly traded crypto-miner in the world. It was listed on the venture exchange in 2017 and mines both Bitcoin and Ethereum.

HIVE’s business model is simple as it focuses on the “HODL” approach, i.e., holding Bitcoin for as long as possible. This allows the company to liquidate its holding at appropriate times (when Bitcoin value rises).

The company usually has a decent debt to cash (and investments) ratio. It also utilizes 100% green electricity for its mining operations in Canada, Sweden, and Iceland.

3. Hut 8 Mining Stock

Hut 8 Mining Stock
  • Market: TSX
  • Ticker: HUT.TO
  • Industry Niche: Bitcoin mining and data center services
  • Forward Dividend Yield: N/A
  • Market Cap: $470.46 Million
  • Forward P/E Ratio: -10.08
  • Average Analyst Rating: 1.8 - Buy

Hut 8 is counted among the largest Bitcoin miners around the globe. It has three dedicated digital asset/data mining facilities and five data centers.

By March 2022, the company had over 6,115 Bitcoins that it had mined itself, valued at over $312 million. The company also mostly employs renewable energy for its mining operations.

Still, its true strength comes from its diversified business model, which makes it more than just another publicly traded miner.

Thanks to its data centers, it caters to different industries like gaming and visual effects.

Hut 8 stock spiked twice between 2020 and 2022, first rising over 1,100% in about six months, then over 300% in less than six months.

4. Bitfarms Stock

Bitfarms Stock
  • Market: TSXV
  • Ticker: BITF.TO
  • Industry Niche: Bitcoin mining
  • Forward Dividend Yield: N/A
  • Market Cap: $307.45 Million
  • Average Analyst Rating: 2.0 - Buy

Bitfarms is a pure-play mining company that focuses on low-cost mining operations, which allows its mining operations to remain profitable, even if the price of Bitcoin dips quite drastically.

It also lends out its computing power for blockchain. The company focuses on 100% renewable-powered mining, so it won’t disrupt the ESG profile of your portfolio.

Most of the company’s infrastructure and mining portfolio is in Quebec, Canada, but it has also expanded to (and is expanding to) the US, Paraguay, and Argentina.

Like most other miners, Bitfarms stock and its growth patterns quite faithfully follow Bitcoin’s.

5. BIGG Digital Assets Stock

BIGG Digital Assets Stock
  • Market: CNSX
  • Ticker: BIGG.CN
  • Industry Niche: Crypto compliance
  • Forward Dividend Yield: N/A
  • Market Cap: $98.12 Million
  • Average Analyst Rating: 1.7 - Buy

BIGG Digital Assets is a future-facing company looking to become a compliance leader in the crypto industry. The company owns and operates a selection of businesses that bring together the two worlds.

Its businesses include the trading platform software focused on following the virtual money trail, and a company focused on acquiring Metaverse businesses, etc.

The company is diverse and can be a promising holding when crypto becomes more mainstream as more than just an investment avenue.

6. DMG Blockchain Solutions Stock

DMG Blockchain Solutions Stock
  • Market: TSXV
  • Ticker: DMGI.V
  • Industry Niche: Blockchain services and solutions
  • Forward Dividend Yield: N/A
  • Market Cap: $2.16 Billion
  • Forward P/E Ratio: -5.93
  • Average Analyst Rating: 2.0 - Buy

Underneath most crypto assets, there is a blockchain that sustains that particular ecosystem and facilitates exchange and trading, and DMG is in the blockchain business.

Its core solutions include the data centers’ operations and services necessary to maintain the blockchain.

But it has expanded its operational capacity to include software solutions and compliance/forensic services related to crypto-assets.

7. Coinbase Stock (American Stock)

Coinbase logo
  • Market: NASDAQ
  • Ticker: COIN
  • Industry Niche: Crypto Exchange Platform
  • Forward Dividend Yield: N/A
  • Market Cap: $27.34 Million
  • Forward P/E Ratio: 0
  • Average Analyst Rating:

Coinbase is the largest crypto exchange in the US, and it’s the only large-cap company on this list. It’s also one of the largest crypto exchanges in the world that caters to over 89 million active users in over a hundred countries.

It also has an impressive B2B presence, and in most cases, it falls short only of Binance, the largest crypto exchange in the world.

What Is The Best Bitcoin Company In Canada?

HIVE Blockchain, Hut 8 Mining, and Bitfarms are commonly considered some of the best Bitcoin companies in Canada.

How To Buy Crypto 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 Crypto Stocks In Canada

Although crypto stocks have been popping up left and right, always be cautious when investing in anything related to cryptocurrencies.

As crypto is a highly volatile sector, don’t invest in what you can’t afford.

You may also consider an alternative exposure to crypto-assets, i.e., crypto ETFs.

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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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