2 top TSX crypto stocks for June as Bitcoin surges: HUT and BITF

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 2 top TSX crypto stocks for June as Bitcoin surges: HUT and BITF
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Highlights

Hut 8 (TSX: HUT) and Bitfarms (TSX: BITF) stocks saw double-digit increases as Bitcoin (BTC) jumped on Monday, May 30.

This rally in Bitcoin came as China reportedly eased its COVID curbs.

Both these TSX crypto stocks are priced under C$ 5.


Hut 8 Mining (TSX: HUT) and Bitfarms (TSX: BITF) saw a double-digit increase in their stock prices as Bitcoin (BTC) crossed US$ 30,000 on Monday, May 30. This rally in Bitcoin came as China reportedly eased its COVID curbs, which seems to have sparked interest in risky assets like digital currencies.

According to CoinMarketCap, Bitcoin was hovering over a value of US$ 31,676.34 at 1:30 AM EST on Tuesday, May 31, having soared by 4.43 per cent in 24 hours.

Both of these TSX crypto stocks are currently priced under C$ 5 apiece despite the latest jump. Let us have a detailed view of these stocks as speculations of Bitcoin heading towards US$ 32,000 rises.

Hut 8 Mining Corp (TSX: HUT)

Hut 8 Mining has been promoting decentralized systems since 2018. The Toronto-headquartered crypto miner acquired cloud services and colocation data centre business of TeraGo Inc in January this year.

Hut 8 Mining reported a year-over-year (YoY) surge of 67 per cent in its revenue of C$ 53.33 million in Q1 FY2022. The small-cap mining firm said that it mined 942 BTC resulting in a revenue of C$ 49.3 million in the latest quarter.

The C$ 620-million market cap company expanded its net profit to C$ 55.7 million in Q1 2022, notably higher than C$ 19.13 million a year earlier.

HUT stock grew by over 11 per cent to close at C$ 3.56 per share on May 30. This crypto stock also plunged by almost 66 per cent in the last six months. As per Refinitiv data, HUT’s Relative Strength Index (RSI) improved from the oversold mark of 30 to 43.34 on Monday.

Also read: Greenlane (TSX: GRN) is skyrocketing: A dirt-cheap clean stock to buy?

2 top TSX crypto stocks for June as Bitcoin surges: HUT and BITF

Bitfarms Ltd (TSX: BITF)

Bitfarms Ltd is a vertically integrated digital currency miner with nine industrial facilities (in total): seven sites in Quebec and one site in Washington state and Paraguay each.

The pure-play bitcoin company improved its total revenues by 40 per cent YoY to US$ 40 million in Q1 2022. The C$ 538-million market cap company mined 961 BTC at an average cost of US$ 8,700 BTC during the first three months of FY2022.

Bitfarms recorded net earnings of US$ 5 million in the latest quarter, significantly up from a net loss of C$ 8 million posted in the first quarter of FY2021.

BITF stock climbed by over 14 per cent to close at C$ 2.65 per share on May 30. This crypto-mining stock slipped by about 48 per cent in the past one year. According to Refinitiv, Bitfarms’ RSI value also stood at 43.17 on May 27.

Also read: 3 TSX natural gas stocks to buy right now & hold forever: TOU, ENB, CVE

Bottomline

Equity investors looking into the digital currency world can start by exploring these TSX crypto stocks. However, one should always keep in mind that crypto stocks, too, are subject to volatility risk associated with the underlying digital assets like Bitcoin. Also, the economic impacts of rising interest rates can continue to affect market sentiments towards risky assets like crypto.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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