The cryptocurrency space started to regain momentum in the late summer after being throttled from May through July. Naturally, this has reinvigorated investor interest in crypto assets. The focus has drawn away from big players like Bitcoin and Ethereum, both of which are still trading well off their all-time highs, to newly launched coins. One of those coins is Shiba Inu. Today, I want to zero in on this new coin and discuss why I’m betting on a top crypto stock on the TSX instead.
What on Earth is Shiba Inu coin anyway?
The Shiba Inu is a Japanese dog breed that is favoured by hunters. This breed is known for its double coat and fox-like legs, ears, and face. The Doge meme, which was popularized in the early 2010s, typically used a picture of a Shiba Inu dog. Back in June, I’d discussed the rise and fall of Dogecoin, a coin which was originally launched as a joke in the previous decade. It was inspired by the Doge meme.
If you would have told me I would be detailing dog breeds and meme history in an investment article a few years ago … meh, I probably would have believed you. The Shiba Inu coin, inspired by the meme-worthy dog breed, launched in 2020 as a self-proclaimed competitor to Dogecoin. Shiba Inu coin has surged in the early part of October. This was fueled by a $44 million purchase by a whale that excited onlookers. Moreover, there are rumours that the team that launched the coin is working on a decentralized exchange.
Shiba Inu has attracted more attention, as over 230,000 people have petitioned for the coin to list on the Robinhood brokerage platform. This could generate even more hype for the coin this fall. Shiba Inu’s rise is amusing and worth monitoring, but I’ve got my eyes on a top crypto stock on the TSX instead.
Here’s a Canadian crypto stock I’d buy instead
Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) is a Toronto-based cryptocurrency mining company. Shares of this crypto stock have climbed 224% in 2021 as of close on October 12. It has been powered by the crypto bull market that spilled over from 2020 into most of 2021. Hut 8 has regained significant momentum since dropping below the $5 price point in June and July.
Investors can expect to see its third-quarter 2021 results in November. In Q2 2021, Hut 8 reported record quarterly revenue of $33.5 million. It generated revenue of $31.4 million from its self-mining operations. Moreover, it mined 553 Bitcoin in the second quarter, which was tacked onto its balance.
The company has achieved adjusted EBITDA of $30.6 million in the first six months of 2021. This is compared to a loss of $322,000 in the first half of the previous year. Hut 8 is perfectly positioned to benefit from cryptocurrency’s arrival into the investing mainstream. Shiba Inu is an exciting gamble, but Hut 8 is generating nice revenues and profit. This is something investors should not ignore.
Hut 8 Mining boasts promising growth potential, and it has been able to bolster its balance sheet over the past year. I’m looking to stash this crypto stock today.