AUS
NZ
UK
CA
USA
IND
.jpg)
Cryptocurrency mining stocks have surpassed the growth of most crypto coins over the past one year. This trend is likely to continue for the month May as well as rising demand for Ethereum and Bitcoin would mean more mining.
Mining difficulty declined by 12.6 per cent recently as coal-based provinces in China stopped crypto mining due to the power outage investigation in Xinjiang. Hence, more crypto miners would need to resume mining to boost hashrate production.
Let’s explore three Canadian junior financial services that have been actively engaging in mining cryptocurrencies and recorded four-digit stock price growth in one year.
1. Hive Blockchain Technologies Ltd (TSXV:HIVE)
The Vancouver-based crypto miner’s stock skyrocketed by over 1,097 per cent in the past one year. Stocks of Hive Blockchain have also returned almost 98 per cent this year, in line with Bitcoin’s year-to-date (YTD) growth of 99 per cent.
The blockchain tech firm’s share price zoomed by nearly 29 per cent last Friday, April 30, while its trading volume stood at 5.8 million, as against its 30-day average volume of 3.3 million shares.
Hive Blockchain registered a profit of US$ 13.7 million from its crypto-mining operation in Q3 FY21, posting an increase of 174 per cent YoY.
2. Bitfarms Ltd (TSXV:BITF)
Blockchain service firm Bitfarms engages in the decentralization of financing (DeFi) and mines Bitcoin, Ether, Litecoin, etc. Its stock price rose 13.5 per cent to C$ 6.34 apiece on Friday and its one-day trading volume doubled against its 30-day average volume.
The DeFi stock skyrocketed 1,228 per cent in the last one year, led by the surge in the digital asset value. It is up as much as 165.6 per cent this year. However, Bitfarms stock has dipped by around 29 per cent from its 52-week high of C$ 9.34 apiece (February 22, 2021).
Bitfarms has been boosting its crypto mining speed and offering high-end DeFi apps amid the rising crypto trading demand among millennials.
©Kalkine Group 2020
3. DMG Blockchain Solutions Inc (TSXV:DMGI)
DMG Blockchain Solutions monetizes its services and generates its profits from the crypto operations. The blockchain stock increased by 5.5 per cent to C$ 1.16 apiece in the last trading session of April.
Its one-day trading volume surged to almost 7 million on Friday from its average 30-day volume of 2.8 million shares.
DMG stock posted a staggering return of nearly 1,265 per cent in the past one year, led by the mainstream acceptance of blockchain technology and virtual currencies. It is up 93.3 per cent YTD, with a price-to-cashflow ratio of 333.8.
On April 28, the company announced a private placement offering of its common shares worth C$ 25 million with institutional investors. This offering would help DMG Blockchain to bring aboard more power sources for mining in British Columbia.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
