Many investors comfortable with tech stocks might abstain from crypto stocks, particularly crypto mining stocks. Crypto is simply too erratic and volatile for investors with a moderate risk profile, but denying the upside is impossible. This is especially true now that Bitcoin has crossed the US$100,000 mark, something that many considered too lofty. However, your decision to buy a crypto mining stock should consider more factors, including the strengths and weaknesses of these individual stocks.
A U.S.-based miner
Hut 8 (TSX:HUT) has Canadian DNA but was established in Miami. It’s one of the largest crypto miners in North America, with a market capitalization of $3.3 billion and an extensive mining asset portfolio. This includes the company’s six mining operations, five that it manages, and five data centres. It also has power-generation assets. Its computing power (data centres) can also be rented out to artificial intelligence (AI) companies to train their models, diversifying its revenue stream.
That said, like most other crypto mining companies, Hut 8’s performance is primarily tied to the bullish and bearish trends in Bitcoin. Since the underlying crypto is currently bullish, so is the stock. The growth trends in the stock and the underlying crypto can be misaligned, which may benefit investors tracking the performance of Bitcoin and using it to identify the right time to buy in stocks like Hut 8.
A Canada-based miner
Vancouver-based HIVE Digital Technologies (TSXV:HIVE) is much smaller compared to HUT 8 in terms of both market value and assets. The company is currently valued at $632 million, and even though its overall power consumption and hash rate are lower compared to Hut 8, it has a more impressive geographical profile with data centres in Canada, Sweden, and Iceland and another opening in Paraguay (three continents). It’s also mostly leveraging green energy for its mining centres, making it a smart investment for environmentally conscious investors.
The company is heavily relying on Donald Trump’s presidency to keep the Bitcoin price up and, in turn, improve its financial standing and performance. Unfortunately, its current performance trend is contrary to that of Bitcoin. At a time when Bitcoin climbed 29%, the HIVE stock has fallen over 38%. A more distributing trend is that there hasn’t been any significant insider buying in the last nine months but massive insider unloading.
Foolish takeaway
Should you buy or sell crypto stocks in 2025? There is speculation about Bitcoin rising to new heights now that there is a president who looks favourably towards crypto. So, with the right stock, you can buy and hold till the prediction and the upcoming bullish trend reaches its peak. Ironically, HIVE Digital Technologies might present a better opportunity due to its discounted state if another intense bull market phase for Bitcoin causes the sentiment around the stock to shift and a buying frenzy initiates.
