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Highlights
- Some believe the US Senate’s decision to impose tax on the crypto industry could boost crypto enthusiasm in North America.
- China’s crackdown on crypto mining operations could also cause North America to emerge as a hub for mining digital assets.
- A Canadian crypto firm’s stock returned about 701 per cent to its shareholders in the past year.
In a surprising development, cryptocurrency has become a part of the US Senate's debate over the US$ 1 trillion infrastructure bill.
The bill’s authors have introduced a projected US$ 28 billion tax on the crypto industry, prompting some crypto advocates to dub it as the biggest regulatory certainty to crypto in the US.
An amendment to limit the proposal was blocked Monday, August 9.
While some stakeholders are worried about this move, some are of the opinion that the government’s interest to generate taxes from the cryptocurrency industry could mean that the digital assets are here to stay.
At the same time, some market experts feel that China’s crackdown on crypto mining operations could cause North America to emerge as a hub for mining digital assets in the coming years.
Keeping all that in mind, we have shortlisted two cryptocurrency stocks that you might want to explore.
Copyright © 2021 Kalkine Media
1. Hut 8 Mining Corp. (TSX:HUT)
One of the oldest digital assets miners in North America, Hut 8 is known for building cash flow business through blockchain technology and Bitcoin. As crypto stocks gained investor attention after the US Senate announced the crypto tax plan, HUT stock gained nearly 12 per cent to close at C$ 8.81 on Wednesday, August 11.
HUT share also returned 701 per cent to its shareholders in the past year, and skyrocketed by 152 per cent year-to-date (YTD).
On February 22 this year, HUT stock clocked a 52-week high of C$ 15.98 per share. It presently holds a price-to-earnings (P/E) ratio of 12.7.
On Thursday, Hut 8 posted what it described as “record” financial results for the second consecutive quarter this year. The digital assets mining company's revenues hit C$ 33.5 million in Q2 2021, as compared to C$ 9.2 million in the same quarter of previous year.
Also Read: 10 cryptos beyond Bitcoin & Ether that have massive YTD growth
2. Mogo Inc. (TSX:MOGO)
The financial technology company offers services like personal loan, mortgage, and cryptocurrency trading to the users. This Canadian company offers a go-to financial mobile application to people and has over one million members in the country.
In its recently announced second quarter results, Mogo revealed that its member base had increased 63 per cent year-over-year (YoY) to approximately 1.7 million by the end of Q2 2021.
Also Read: Which are the best Crypto Wallets in Canada?
In the same quarter, Mogo recorded revenues of C$ 13.7 million, representing an increase of 29 per cent YoY. It also posted a net income of C$ 9 million in Q2 2021, as compared to a net loss of C$ 1.6 million in Q2 2020.
Bottomline
The cryptocurrency industry has evolved over the years and the number of enthusiasts in this field are expanding worldwide, prompting many countries to take note of it.
Cryptocurrencies, at the end of the day, continue to be a significantly volatile asset, and the latest development at the US Senate could trigger a notable shift in many of these digital tokens.
