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HIVE Stock vs. Bitcoin: Which Is the Better Investment?

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Image source: Getty Images

If you’re bullish on Bitcoin and the cryptocurrency as a whole, then you’ve probably heard of HIVE Blockchain Technologies (TSXV:HIVE). HIVE is one of the best cryptocurrency stocks in Canada, mining highly popular digital currencies such as Bitcoin and Ether.

Because HIVE is such a high-quality company, it’s definitely worth consideration from investors. If you’re bullish on cryptocurrencies, especially the highly popular ones, there are many reasons to buy HIVE stock today.

With that being said, though, an investment in HIVE stock is much different than an investment in Bitcoin.

So, if you’ve been considering the two, here are the main differences and which is the better investment today.

HIVE Blockchain Technologies stock

As I mentioned before, HIVE is one of the top crypto mining stocks in Canada. Unlike many of its peers, HIVE has diversified operations, mining various highly valuable digital currencies and in different jurisdictions.

So, rather than solely having Bitcoin mining operations, the company is exposed to other high-potential cryptocurrencies, such as Ether. This is why it’s one of the top growth stocks in the industry.

Mining companies have the opportunity to make massive profits, especially when the price of what they are mining is increasing in value. That’s why HIVE stock offers immense growth potential. However, it’s not what makes it one of the best crypto miners in the space.

For that, you have to look at HIVE’s operations. With cryptocurrency mining, having a leg up on your competitors is crucial. For example, it’s not like gold mining, where every company has its own land to mine on. In cryptocurrency, you’re competing with all the other miners, which makes high-quality computing equipment crucial.

This is something HIVE has always been exceptional at. And over the past few months, while Bitcoin and the whole crypto sector have been out of the news after the major rally ended, the company has continued to improve its operations.

HIVE has recently been investing in more growth, growing both its production and its mining competitiveness.

Plus, the company also holds a tonne of the digital coins it mines, hoping to see more price appreciation and grow shareholder value even faster. So, if you’re bullish on Bitcoin and the cryptocurrency sector and are looking for a top stock to gain exposure, HIVE Blockchain Technologies is one of the best choices there is.


While HIVE stock is a great long-term investment, some investors may prefer to gain exposure directly to Bitcoin.

There’s no question of the potential Bitcoin offers, especially with the rapid rallies we have seen time and again. So, for more risk-averse investors, an investment in Bitcoin, or an ETF that gives you direct exposure, is much more straightforward.

With an investment in HIVE, not only are you exposed to the massive volatility of the cryptocurrency industry, but you also face company-specific risk.

If HIVE doesn’t execute, the stock could fall even if the cryptocurrency sector rallies in the future. And while I don’t necessarily expect that to happen, it’s an extra risk you have to be aware of.

And since there are so many easy and low-cost ways to gain exposure to Bitcoin, it’s a great option for many investors.

Whatever way you decide to gain exposure to Bitcoin, though, just make sure you’re committed for the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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