- Penny stocks can typically be understood as companies that have smaller market cap and stock price that can grow with time.
- While they often draw investor attention with their discounted stock values, they also come with high volatility that traders need to be mindful about.
- As the blockchain industry is expected to grow in the near future, penny blockchain stocks could be an option to explore.
Penny stocks can typically be understood as companies that have smaller market cap and stock price that can grow with time. While they often draw investor attention with their discounted stock values, they also come with high volatility that traders need to be mindful about.
As the blockchain industry is expected to grow in the near future, penny blockchain stocks could be an option to explore.
On that note, let’s explore a few of Canadian blockchain penny stocks to look at.
- Bitfarms Ltd (TSX:BITF)
Bitfarms is a Canadian bitcoin mining company with advanced data centers and bitcoin mining hardware. It is known to carry out large-scale mining operations in North America.
Although it has fallen by about 54 per cent from its 52-week high of C$ 9.34 (February 22, 2021) Bitcoin stock price grew by a whopping 1,086.11 per cent over the past one year. It closed at C$ 4.27 apiece on July 15, 2021.
The company had launched its initial public offering (IPO) in July 2019, and held about 162.48 million shares outstanding as on July 15.
Bitfarms Ltd posted total revenue of US$ 28.4 million in Q1 2021, up 209 per cent year-over-year (YoY). Owing to the pandemic pressure, it also incurred a net loss of US$ 7.6 million in the latest quarter.
- IMining Blockchain and Cryptocurrency IN (TSXV:IMIN)
IMining Blockchain and Cryptocurrency is in the business of mining cryptocurrencies and providing blockchain and cryptocurrency-related services.
The crypto firm first got listed on the Toronto Stock Exchange Venture (TSXV) after the launch of its IPO in December 2007. It has a market cap of about C$ 11 million and 94.7 million total outstanding shares.
IMining stock closed at C$ 0.135 apiece on July 15, hovering nearly 200 per cent above its 52-week low of C$ 0.05 (July 16, 2020). It is, however, nearly 84 per cent below its 52-week high of C$ 0.84 (March 21, 2021).
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- DMG Blockchain Solutions Inc. (TSXV:DMGI)
DMG Blockchain Solutions Inc. develops and manages the blockchain ecosystem. Its business model includes data analytics, operations of data centers, and developing enterprise-wide blockchains.
The blockchain stock closed at a value of C$ 0.7 apiece on July 15, trading nearly 87 per cent below its 52-week high of C$ 5.34 (February 22, 2021).
DMG scrips are, however, a notable 900 per cent above its 52-week low of C$ 0.07 (September 24, 2020).
DMG Blockchain posted total revenues of C$ 2.49 million for quarter ending March 21, 2021, up from C$ 1.48 million in Q1 2020. Its total expenses amounted to about C$ 4 million in the latest quarter, up from C$ 2.78 in the prior year quarter.
DMG has a price-to-book ratio of 1.231 and price-to-cashflow of 199, as per TMX.
4. Neptune Digital Assets Corp. (TSXV:NDA)
Neptune Digital Assets debuted on the stock markets in January 2018 via an IPO. It presently holds a market cap of about C$ 55 million and total outstanding shares of around 124.9 million, as per TMX.
The company, which owns, develops and runs digital currency infrastructure assets, saw its stocks close at a value of C$ 0.475 apiece on July 15.
At this price, the crypto stock was trading a significant 630 per cent above is its 52-week low of C$ 0.065 (November 11, 2020).
Neptune’s scrips accelerated by nearly 70 per cent over the last six months. In the last one year, the penny stock increased by 375 per cent.
Neptune Digital Assets reported a net comprehensive income of $6.07 million in the quarter ending February 28, 2021. The enterprise also saw a 200 per cent quarter-over-quarter (QoQ) growth in its total assets in the latest quarter.
The firm held a return on equity (ROE) of 49.71 per cent and a return on assets (ROA) of 47.86 per cent, as per TMX.