Bitcoin mining consumes approximately 150 Terawatt-hours (TWh) of electricity annually—surpassing the entire electricity usage of Ontario (133.8 TWh in 2021). While environmental concerns persist, crypto mining stocks offer a strategic way to invest in cryptocurrencies without direct asset ownership.
Below, we explore Canada’s top crypto mining stocks, their pros/cons, and key factors to consider.
Understanding Crypto Mining Stocks
Most publicly traded crypto miners specialize in Bitcoin, the most energy-intensive cryptocurrency. Key considerations when evaluating mining stocks:
- Green Energy Usage: Prioritize miners using 100% renewable energy (e.g., hydroelectric), enhancing ESG compliance.
- Cost per Bitcoin: Lower mining costs correlate with higher profitability.
- Hash Rate: Higher computing power increases mining output.
Performance often mirrors the underlying cryptocurrency’s value. For example, Canadian mining stocks declined during May–July 2021 despite a 22% tech sector rally.
Pros and Cons of Crypto Mining Stocks
✅ Pros
- High growth potential.
- Simplified crypto exposure within registered accounts (TFSA/RRSP).
- Avoids direct crypto volatility.
❌ Cons
- Extreme price volatility.
- Heavy reliance on Bitcoin’s performance.
- Limited diversification (most focus solely on Bitcoin).
Canada’s Crypto Mining Infrastructure
Canada’s abundant renewable energy (especially hydroelectric) and cold climate reduce operational costs, making it a global mining hub. Key regions:
- Quebec & Alberta: Hydroelectric-powered facilities dominate.
- Cold Climate: Natural cooling lowers rig maintenance costs.
👉 Explore top crypto mining facilities in Canada
Top 6 Crypto Mining Stocks in Canada
1. Galaxy Digital Holdings (GLXY.TO)
- Market Cap: $4.84B | P/E Ratio: 6.73
- Focus: Diversified crypto services, including mining (80% renewable energy).
- Performance: 3,600% growth (2018–2021), outpacing Bitcoin.
2. Hut 8 Mining (HUT.TO)
- Market Cap: $1.34B
- Focus: Bitcoin & Ethereum mining + Web 3.0 data centers.
- Growth: 1,300% (2018–2021).
3. HIVE Blockchain (HIVE.V)
- Market Cap: $485M
- Focus: 100% green-energy Bitcoin/Ethereum mining.
- Highlight: 6,000% surge (2020–2021).
4. Bitfarms (BITF.TO)
- Market Cap: $1.25B
- Focus: Bitcoin-only, hydro-powered Canadian/US operations.
- Transparency: Publishes mining costs per Bitcoin.
5. DMG Blockchain (DMGI.V)
- Market Cap: $76M
- Focus: Mining + blockchain monetization.
- Innovation: Developing advanced cooling tech.
6. SATO Technologies (SATO.V)
- Market Cap: $18M
- Focus: AI-driven, hydro-powered Bitcoin mining in Quebec.
- Expansion: Plans to increase capacity 5x–25x by 2025.
👉 Compare mining stock performance
Best US Crypto Mining Stocks
- Marathon Digital (MARA): 17,000% growth (2020–2021).
- Riot Blockchain (RIOT): 10,000% surge (2020–2021).
- Core Scientific (CORZ): Mines 7+ cryptocurrencies.
Should You Invest?
Ideal if you:
- Seek crypto exposure without direct ownership.
- Tolerate high volatility.
- Aim for TFSA/RRSP tax advantages.
⚠️ Risks: Rising mining difficulty could shrink profitability long-term.
FAQs
Q: Which crypto mining stocks are best?
A: HIVE Blockchain and Bitfarms (Canada); Marathon Digital and Riot Blockchain (US).
Q: Is crypto mining legal in Canada?
A: Yes, with distinct tax rules for individuals vs. businesses.
Q: What happens when all Bitcoin is mined?
A: Miners will rely on transaction fees post-2140.
Final Thoughts
Crypto mining stocks amplify Bitcoin’s gains while offering tax benefits. However, their volatility and Bitcoin dependence require careful risk assessment.
For diversified exposure, consider crypto ETFs as an alternative.