2 Canadian crypto stocks to explore in Q4 2021

The cryptocurrency market has drawn quite a bit of attention from investors across the world over the past year. However, there have been quite a few obstacles as well in the global crypto space that made headlines.

Most recently, tremors ran through the crypto market as the US Securities and Exchange Commission (SEC) issued a subpoena to Marathon Digital Holdings on the charges of allegedly violating federal securities law.

As this development saw many crypto stocks decline in value, some investors seem to be exploring options to buy the dip.

Also read: Can Cineplex (TSX:CGX) be a phoenix stock?

While keeping in mind that this industry comes with its own set of volatilities, let’s look into two Canadian crypto stocks.

1.    Hut 8 Mining Corp (TSX: HUT)

Canadian digital asset miner Hut 8 Mining Corp saw its stock slip by over four per cent to close at C$ 17.46 apiece on Tuesday, November 16.

HUT stock, however, has soared by roughly 135 per cent in the past three months and zoomed by nearly 1,380 per cent in the last one year. The crypto miner’s scrip clocked a one-year high of C$ 20.61 on November 9.

 Image source: © 2021 Kalkine Media Inc        

The Toronto-headquartered crypto miner held a total of 4,729 bitcoins (market value C$ 263.8 million) at the end of the third quarter of fiscal 2021.

Its revenue in this quarter stood at C$ 50.3 million, which included C$ 47.9 million from self-mining activities and C$ 2.4 million from the expanded hosting service. It mined 905 bitcoins in the latest quarter.

Hut 8 held a price-to-earnings (P/E) ratio of 30.9 and a return on equity (ROE) of 19.70 per cent on Wednesday, November 17.

Also read: 3 Canadian healthcare stocks to keep on your radar

2.    Hive Blockchain Technologies Ltd (TSXV: HIVE)

The Vancouver-based blockchain company’s stock also fell by more than four per cent to close at C$ 5.07 apiece on November 16. It also decreased by nearly eight per cent in the last one week.

However, HIVE stock has spiked by almost 31 per cent in the past month and swelled by more than 112 per cent on a year-to-date (YTD) basis. The blockchain stock also rocketed by about 875 per cent in the last 12 months.

As for its financial performance, Hive Blockchain recorded a growth of 305 per cent year-over-year (YoY) in its revenue of C$ 52.6 million in the second quarter of fiscal 2021. Its net income, on the other hand, increased by 549 per cent YoY to C$ 59.8 million in this quarter.

The company reportedly mined 656 bitcoins and over 8,688 Ethereum in the latest quarter.

HIVE stock’s price-to-book (P/B) ratio stood at 8.177 on November 17, while its ROE was 50.07 per cent.

Bottom line

In a growing world of crypto operations, Hive Blockchain Technologies is set to be looking adding two new data centres at New Brunswick. Such developments are likely to have a positive influence the crypto stock’s performance.

However, as mentioned above, the crypto space continues to exist on volatile grounds, leaving a lot to the unknown. Hence, investors should tread very carefully in these territories.