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The cryptocurrency market is in a recovery mode after plunging severely amid China’s crackdown on crypto mining operations. Bitcoin rebounded to a value of US$ 35,440 apiece (10AM UTC) on Tuesday, June 29, up by more than 20 per cent against its price of US$ 29,450 on June 23.
Amid this recovery, passive crypto investors seem to be exploring the stocks of bitcoin mining firms like CryptoStar Corp. (TSXV:CSTR) and Hut 8 Mining Corp. (TSX:HUT).
Both these crypto stocks have yielded three-digit growth in the last nine months. These companies have also been beefing up their mining capacity by installing more crypto mining equipment.
Let us look at these Canadian firms’ stocks and mining operation developments.
CryptoStar Corp (TSXV:CSTR)
The blockchain company has its crypto mining operations in North America and Iceland. The company has recently added more digital currency mining machines to increase its hashrate using its existing data centers. Its stock price is C$ 0.15 apiece, which is almost half of Dogecoin.
The advanced technology stock has grown 25 per cent year-to-date (YTD), outperforming Bitcoin that has surged 21 per cent this year.
The crypto firm’s share price has swelled 400 per cent in the past nine months, propelled by Bitcoin’s mainstream demand and mining boom. The stock has gained 500 per cent from its one-year low of 0.025 apiece (October 15, 2020).
In the first quarter of 2021, CryptoStar reported record net income from its operations, guided by the retained crypto tokens’ higher prices. At the end of the first quarter, it generated 46.6 Ether tokens, over 15 BTC, and a total available fiat money balance of C$ 22.5 million.
Copyright ©Kalkine Media 2021
Hut 8 Mining Corp. (TSX:HUT)
One of the leading crypto-mining listed companies on the Toronto Stock Exchange (TSX) has capitalized on the crypto market frenzy. In mid-June, the company got listed on the New York-based Nasdaq exchange.
Hut 8 shares soared over 350 per cent in the past one year on TMX. It has a current stock price of C$ 4.64 apiece and a market cap of C$ 661 million. The crypto mining stock has increased by 33 per cent YTD.
After deploying new crypto mining machines, the company expects to mine two to three BTC tokens per day by August 2021. With the current mining capacity, the company extracts 6.2 to 7.3 BTC tokens per day as per the company’s press release. Hut 8 Mining held over 3,000 bitcoins in its inventory in the first quarter of 2021.
Please note: The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from EODHD/Others.
