The Canadian cryptocurrency stocks on our list are expected to benefit most from a rise in the Bitcoin price
SmallCapPower | November 23, 2020: Bitcoin is closing in on its all-time high of just under US$20,000, after breaking through $18,000 last week, on the perception that the cryptocurrency is an inflation hedge, expectations of mainstream acceptance, and interest from institutional investors. Today we have identified three Canadian cryptocurrency stocks that should benefit most from a rise in the Bitcoin price.
*Returns are based on closing stock prices as of November 20, 2020
Galaxy Digital Holdings Ltd. (TSX:GLXY) – $6.23
Galaxy Digital is a diversified asset management firm dedicated to the digital assets and blockchain technology industry. The firm manages capital on behalf of external clients in three distinct business lines: Index Fund Management, Blockchain Ecosystem Funds, and Opportunistic Funds. Galaxy Digital Capital Management’s multi-disciplinary team has deep experience across active and passive portfolio management, capital markets, operations, and blockchain technology. The firm is a subsidiary of Galaxy Digital Holdings, which was founded by Michael Novogratz, a former Principal and Chief Investment Officer of the Fortress Macro Funds, and a former Partner at Goldman Sachs. During the first nine months of 2020, the company’s digital assets increased by $147.4 million to $241.6 million. GXLY stock has soared more than 350% since we first wrote about the company in February 2020.
- Year-to-Date Return: 488%
HIVE Blockchain Technologies Ltd. (TSXV:HIVE) – $0.72
HIVE Blockchain is a growth-oriented company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly-minted digital currencies such as Ethereum continuously, as well as cloud-based ASIC-based capacity, which produces newly-minted digital currencies such as Bitcoin. HIVE aims to provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of cryptocurrency. During the company’s most-recently reported quarter (Q1 2021), it generated income from digital currency mining of US$6.6 million.
- Year-to-Date Return: 658%
Voyager Digital Ltd. (CSE:VYGR) – $1.10
Voyager Digital is a crypto-asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. Voyager offers customers best execution and safe custody on a wide choice of popular crypto-assets. The Company announced recently that its Assets Under Management (AUM) have soared 20 fold year to date, surpassing US$100 million, while its Fiscal 2020 revenue grew 1,159% year over year to approximately $1.1 million.
- Year-to-Date Return: 368%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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