Forget Bitcoin for now and Invest in These Cryptocurrency Stocks Instead

In late April, I examined whether the bull market in Bitcoin and other cryptocurrencies had come to an end. A few weeks later, the world's most valuable crypto assets suffered precipitous losses. Rumours circulated that US federal officials were preparing to increase regulatory pressure on digital currency. Meanwhile, Elon Musk alienated Bitcoin enthusiasts when he declared that Tesla would withdraw from cryptocurrency due to its colossal carbon footprint. Today, I'd want to examine the factors that contributed to Bitcoin's recent spike. However, I'm more interested in acquiring two cryptocurrency stocks. Let us dive in.

Why has Bitcoin regained traction in the late summer

In the late spring and early summer, volatility wreaked havoc on Bitcoin and its counterparts in the cryptocurrency industry. Fortunately, fears of a regulatory crackdown subsided this summer. On the contrary, policymakers have recently expressed a much greater willingness to accept Bitcoin and other cryptocurrencies. This demonstrates that this is a market that will endure.

On August 20, the price of Bitcoin surpassed US$47,000 in early morning trade. This is the highest point since the correction began in the early half of May. As is customary, investors should be mindful of the sector's high volatility. Canadian investors may wish to examine crypto equities rather than Bitcoin.

This cryptocurrency stock is still quite valuable.

Galaxy Digital Holdings Limited (GLXY) is the first cryptocurrency stock I'd like to discuss today. This asset management company is active in the space of digital assets, cryptocurrencies, and blockchain technology. As of August 19, Galaxy's shares have increased by 97 percent in 2021. The stock has increased by more than 480 percent year over year.

On August 16, the firm revealed its second-quarter 2021 financial results. Galaxy saw some resistance following a decline in cryptocurrency prices. Nonetheless, volume of counterparty trading surged by more than 90% in the second quarter. At the same time, assets under management (AUM) increased by 11% to $1.42 billion. Despite this, the company reported a nett comprehensive loss of $175 million in Q2 2020, down from a nett gain of $35.3 million in Q2 2019.

The price-to-earnings ratio of this cryptocurrency stock was 6.8 at the time of press. It is not too late to purchase Galaxy, since digital currencies are seeing a renaissance.

Now is not the time to sleep on this Bitcoin miner.

Hut 8 Mining (HUT) is a Toronto-based cryptocurrency mining firm operating in North America. This cryptocurrency stock has increased by 103 percent in 2021. Its shares have increased by 570 percent year over year.

On August 12, the firm released its second-quarter 2021 financial results. Hut 8 has been enthusiastic about long-term holdings of Bitcoin. 100% of self-mined Bitcoin was deposited into custody in Q2 2021. Hut 8 had 3,824 Bitcoins as of June 30, 2021. In Q2 2021, total sales was $33.5 million, up from $9.23 million the previous year. Adjusted EBITDA improved to $30.6 million in the year to date period, up from a slight loss in the first six months of 2020.

Even better, this cryptocurrency stock maintains a favourable P/E ratio of 20.

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