2 Crypto TSX Stocks to Buy in February

Crypto TSX stocks saw a rebound this week with the rise in Bitcoin (CRYPTO:BTC) and other digital assets, but these two are still a steal.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 8, 2022 1:08 pm EST

Bitcoin (CRYPTO: BTC) bounced back this week, causing a tidal wave of anything cryptocurrency-related to start climbing as well. Yet it cannot be denied that when it comes to Bitcoin, price is certainly an object. Which is why it’s also a good idea for Motley Fool investors to look into other crypto-related TSX stocks. And now is the time.

With a rebound underway, there are some analysts who believe Bitcoin could be soaring towards all-time highs. In fact, some have even speculated it could reach US$200,000 in 2022. That remains to be seen, but at these levels there are certainly some cheap TSX stocks in the digital asset field that I would recommend.

crypto, chart, stocks — Image source: Getty Images

Galaxy Digital Stock

Galaxy Digital Holdings (TSX: GLXY) is a strong choice for Motley Fool investors looking for crypto-related TSX stocks. The company invests in Bitcoin directly, but also in anything related to the industry. That includes an asset manager, mining support, and investment banking. It pretty much has its hand in everything, which is why investors seeking out a diversified crypto-related company would do well to consider Galaxy Digital stock.

However, shares dropped from two reasons. First, the fall in Bitcoin, cryptocurrency companies, and tech stocks all contributed to the fall in Galaxy Digital stock. However, it also reported earnings that missed estimates. The biggest set back was that assets under management fell to $2.87 billion, a 75% increase year over year, but a fall of 17% since November. Again, much of this came down to the fall in Bitcoin. Still, it shows the near-term volatility of the company.

That being said, this is a near-term issue if one believes crypto TSX stocks are the future. The fall in Bitcoin also leaves the company open for further acquisitions, and it still has a U.S. listing to look forward to. Now that there’s a rebound, it could be a great time to pick up this cheap cryptocurrency stock.

Galaxy Digital stock trades at $18 as of writing, up almost 30% since January lows. It trades at four times earnings, with a consensus target price of $45.67, representing a potential upside of 152%.

Hut 8 Mining

Speaking of U.S. listings, Hut 8 Mining (TSX: HUT)(NASDAQ: HUT) already has its on the books. It’s one of the Canadian TSX stocks that continues looking for opportunities and has the funds to do it in the crypto world. Hut 8 currently holds 5,826 self-mined Bitcoin as of January. And yet shares only recently started to increase after the good news.

Again, this comes to the fall in Bitcoin especially. Hut 8 stock focuses on Bitcoin mainly, though it mines other cryptocurrency as well. Still, the near-term volatility certainly hurts its bottom line. That being said, it continues to acquire more data centres and brings the costs of mining down. That will only improve with time.

Earnings are set to come out in March, and last quarter was a record-setter for Hut 8 stock, even among other TSX stocks in the crypto industry. Motley Fool investors witnessed record-breaking revenue as cryptocurrency soared. Yet now it’s still a deal, after slipping to oversold territory in January and only now coming back.

Shares of Hut 8 stock trade at 17.58 times earnings, currently at $8.85, up 50% since January lows. The company has a consensus target price of $18.25, representing a potential upside of 106%.