2 Hottest Crypto Stocks I’d Buy in December 2021

These are two of the hottest crypto stocks to buy in Canada this month.

| More on:
crypto blockchain

Image source: Getty Images

While the Canadian equities market has seen solid gains in 2021 so far, the recently emerged coronavirus variant Omicron is taking a toll on investors’ confidence — leading to a market correction. This factor, along with the ongoing uncertainties about cryptocurrencies-related regulations in some countries, is hurting crypto investors’ sentiments.

Nonetheless, the overall outlook for some top cryptocurrencies like Bitcoin and Ethereum remains strong. That’s one of the reasons why investors can take advantage of the ongoing market declines and consider buying some falling Canadian crypto stocks cheap. Here are two of my favourite TSX crypto stocks that I find worth buying in December 2021.

HUT 8 Mining stock

HUT 8 Mining (TSX:HUT)(NASDAQ:HUT) is a Toronto-based fintech firm that mainly focuses on mining top cryptocurrencies like Bitcoin. It currently has a market cap of about $2.7 billion as its stock trades at $16.13 per share with 362% gains in 2021. While its year-to-date gains look impressive, the stock has seen a 12% downside correction in the last 10 sessions.

In the September quarter, Hut 8 Mining’s total revenue rose by 775% year over year to $50.3 million — beating analysts’ consensus estimates. It was the fourth consecutive quarter when the company continued to post higher than expected revenue. As a result, its adjusted earnings for the quarter stood at $0.15 per share — about 22% higher than analysts’ consensus expectation.

In Q3, Hut 8 mined 905 Bitcoin and added all of them to its self-mined Bitcoin balance. At the end of the quarter, it had a balance of about 4,729 self-mined Bitcoin. On November 11, the company revealed that it has surpassed its goal of holding 5,000 Bitcoin in reserve. While HUT stock has already risen by 52% in Q4 so far, I expect its stock to continue surging in the coming months, along with a recovery in the crypto market.

HIVE Blockchain stock

HIVE Blockchain (TSXV:HIVE)(NASDAQ:HIVE) is another attractive crypto stock on the TSX that investors could buy amid the ongoing market correction. It’s a Vancouver-based cryptocurrency mining company with a market cap of about $1.9 billion. Its stock has already more than doubled in 2021 so far to $4.90 per share, but still appears to have good upside potential with the improving momentum in its mining activity.

In the September quarter, HIVE mined 656 Bitcoin — significantly more than 226 Bitcoin mined in the previous quarter. In contrast, it mined 8,688 Ethereum in the second quarter of its fiscal year 2022 — lower than 9,701 Ethereum mined in the previous quarter. A drop in the number of Ethereum mined was mainly due to the consistently rising difficulty rate to mine the cryptocurrency.

Nonetheless, its quarterly revenue for the first time rose above the US$50 million level. Similarly, its adjusted gross profit jumped to US$45 million in the September 2021 quarter from just US$9.2 million a year ago. I expect HIVE to continue benefitting from strong Bitcoin and Ethereum prices amid investors’ growing interest in the cryptocurrency market.

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.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Cryptocurrency

Big Bitcoin logo.
Cryptocurrency

2 Cryptocurrencies That Could Outpace Bitcoin in 2022

The S&P 500 more than doubled between March 2020 and December 2021. In this period, the cumulative market cap of …

Read more »

question marks written reminders tickets
Cryptocurrency

Can Ethereum Recover From its Early 2022 Beatdown?

Ethereum (CRYPTO:ETH) is one of the most prominent picks among cryptocurrency investors worldwide. It is the second-largest crypto in terms of …

Read more »

crypto blockchain
Cryptocurrency

Cryptocurrency: Are Alt-Coins Riskier Than Bitcoin?

In crypto circles, it’s not uncommon for people to tout the virtues of Bitcoin (CRYPTO:BTC) over all other coins. Citing …

Read more »

crypto blockchain
Cryptocurrency

Solana Funds: Yet Another Reason This Is the Best Crypto Stock to Buy Now

The cryptocurrency industry has gone through its fair share of ups and downs over the last decade. However, despite the …

Read more »

Business success with growing, rising charts and businessman in background
Cryptocurrency

Why Hut 8 Mining Jumped 13% on Wednesday

Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) saw shares jump 13% on Wednesday. The tech crash seems to be on the rebound, and …

Read more »

crypto blockchain
Cryptocurrency

3 of the Best Cryptocurrencies to Buy in This Massive Selloff

Any time the market moves in a big way, it’s essential to take a step back and look at the …

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Cryptocurrency

Shiba Inu vs. Dogecoin: Which Will Win in 2022?

Cryptocurrencies are all the rage right now. For meme tokens such as Dogecoin (CRYPTO:DOGE) and Shiba Inu (CRYPTO:SHIB), this goes double — especially …

Read more »

cryptocurrency, crypto, blockcahin
Cryptocurrency

2 Important Ratios That Could Help You Analyze Bitcoin Prices

The cryptocurrency market has experienced a sustained selloff after touching record highs in November 2021. Several digital tokens, including Bitcoin …

Read more »