2 Canadian Crypto Stocks I’d Avoid (and 1 I’d Buy Instead)

Crypto-to-AI pivots sound exciting, but the safer way to play the boom might be a proven AI supplier like Celestica.

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 May 20, 9:30 am EDT

| More on: CLSHUTKEEL

Key Points

Keel and Hut 8 both have big AI infrastructure ambitions, but their losses and transition risk are still too high.
Celestica is already delivering massive revenue and earnings growth from real AI and data-centre demand.
It isn’t cheap, but CLS relies on customers and cash flow, not Bitcoin prices.

Some crypto stocks look thrilling. Some just look dangerous. Bitcoin can move fast, but crypto stocks can move faster. That speed creates the appeal, and also creates the trap. The best names don’t just ride a coin price higher, but need cash, durable revenue, and a business that can survive the next digital asset slump.

That’s why I’d be careful with Keel Infrastructure (TSX:KEEL), formerly Bitfarms, and Hut 8 (TSX:HUT). Both have upside if their artificial intelligence (AI) infrastructure plans work. But the losses and execution risk look too high. Celestica (TSX:CLS), meanwhile, looks like the stock I’d rather buy. It gives investors AI infrastructure exposure without relying on Bitcoin prices to make the story work.

A data center engineer works on a laptop at a server farm. — Source: Getty Images

KEEL

Keel Infrastructure still carries the old Bitfarms story in investors’ minds. It mined Bitcoin, ran power assets, and chased scale. Now it wants a bigger identity as a North American digital and energy infrastructure company focused on high-performance computing and AI. That sounds timely, with data centres fighting for power.

The trouble comes from today’s numbers. In the first quarter of 2026, Keel reported revenue of US$37 million, down 23% year over year. It had about US$533 million in liquidity as of May 8, which helps. But the business still sits in transition. It exited Latin American megawatts, redomiciled to the United States, and shifted toward sites such as Panther Creek, Sharon, and Moses Lake.

That may pay off later. For now, investors face a high-risk turnaround. The company needs customers, leases, capital discipline, and clean execution. It no longer looks like a simple Bitcoin miner, but it also hasn’t proven the new model yet. That’s enough reason to leave KEEL on the watch list.

HUT

Hut 8 looks tempting on the surface. The crypto stock now calls itself an energy infrastructure platform, with power, digital infrastructure, and compute assets. It also lined up AI-related opportunities. In the first quarter (Q1) of 2026, Hut 8 pointed to 597 megawatts of IT capacity across two hyper-scale AI campuses and an 8,375-megawatt (MW) development pipeline.

Those numbers are enormous, and so are the risks. Revenue jumped to US$71 million in Q1 from US$21.8 million a year earlier. But Hut 8 also posted a net loss of US$253.1 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative US$250.5 million. The loss included US$295.7 million of unrealized losses on digital assets.

That’s too much volatility. The AI leases could become valuable, and Hut 8 may turn into an infrastructure winner. But until cash flow catches up, the stock looks priced for good news. One delay, financing concern, or crypto pullback could shake confidence quickly.

CLS

Celestica isn’t a crypto stock, and that’s the point. It’s a Toronto-based electronics manufacturing and supply-chain company that has become one of Canada’s most powerful AI infrastructure plays. The company serves cloud, communications, aerospace, defence, industrial, health tech, and capital equipment customers. Its Connectivity and Cloud Solutions segment has become the star, helped by demand from hyperscale data-centre and AI customers.

The latest numbers show why CLS looks like the better buy. In Q1 2026, Celestica’s revenue jumped 53% year over year to US$4.05 billion. Adjusted earnings per share (EPS) rose 80% to US$2.16, while adjusted operating margin hit 8%, a new company milestone. Management also raised its 2026 outlook to US$19 billion in revenue and US$10.15 in adjusted EPS, helped by stronger customer visibility and new program wins.

The stock isn’t cheap anymore. Celestica recently carried a TSX market cap of around $52 billion and a trailing P/E of around 40. That valuation leaves room for a pullback if AI spending cools or customer demand shifts. But unlike KEEL or HUT, Celestica already has major revenue, rising earnings, and proven customer demand. Investors still take risk here, just a different kind of risk.

Bottom line

Crypto stocks can make investors rich quickly. They can also punish anyone who ignores losses, dilution, and valuation. KEEL and HUT have exciting AI pivots, but the proof needs to show up. Celestica already has the proof. For investors who want AI upside in 2026 without leaning on Bitcoin, CLS looks like the better buy.