Some Canadian blockchain stocks experienced double-digit gains in the first half of 2019. Which ones made the list?
During the second quarter of 2019, the price of bitcoin enjoyed a comeback, increasing significantly to reach a high of US$13,796 on June 26.
The rise was in contrast to the first quarter of the year, when the cryptocurrency was relatively flat.
With the second quarter now over, here the Investing News Network looks back at the top three Canadian blockchain stocks year-to-date. The stats below were obtained from Barchart on July 2, 2019, and all companies listed had market caps between C$5 million and C$500 million at that time.
1. Hut 8 Mining (TSXV:HUT)
Current share price: C$2.38; market capitalization: C$214.82 million; year-to-date gain: 80.54 percent
Hut 8 Mining is the top company on our list of gainers. It operates over 85 data centers at a rate of 784 petahashes per second. A petahash is equivalent to 1 quadrillion hashes per second; the purpose of hashes is to solve or, in other words, “mine” a block in a blockchain.
Hut 8 Mining has cryptocurrency mining centers in the Alberta cities of Medicine Hat and Drumheller. In addition, it has an exclusive partnership with bitcoin software company Bitfury, which provides Hut 8 Mining with mining infrastructure, including semiconductors and fixed-site installations.
In May, the company announced its Q1 financial results, reporting C$12.1 million in revenue and 2,405 bitcoin mined during the period. Its net loss was C$6.06 million as site operating costs took up over C$12.63 million for the quarter; that is a 600 percent increase from the same period in 2018.
2. HIVE Blockchain Technologies (TSXV:HIVE)
Current share price: C$0.52; market capitalization: C$163.28 million; year-to-date gain: 67.86 percent
HIVE Blockchain is a cryptocurrency miner with a portfolio of cryptocurrencies, including bitcoin, ethereum and litecoin. In addition, the company has mining operations in Sweden, Norway and Iceland.
In Q2, HIVE had both favorable and unfavorable experiences. In April, the company was involved in a dispute with its largest shareholder, Genesis Mining. HIVE demanded C$50 million from Genesis Mining for breaching a contract. Genesis subsequently attempted a hostile takeover of the HIVE board.
In May, the company announced an agreement with Argo Blockchain (LSE:ARB). The companies signed a letter of intent and proposed a share swap through which HIVE would exchange 5 percent of its outstanding shares for 15 percent of Argo’s outstanding share capital.
3. Codebase Ventures (CSE:CODE)
Current share price: C$0.035; market capitalization: C$9.12 million; year-to-date gain: 16.67 percent
Founded in 2009, Codebase Ventures, formerly 360 Blockchain, is a company that invests in early stage blockchain startups. It has invested in companies such as ICO Ranker, Arcology and Pressland. ICO Ranker is a news website that covers initial coin offerings, token sales and crowdfunding. Arcology is a blockchain ecosystem with its alpha product currently under development.
During Q2, Codebase Ventures increased its investment in Arcology to 30 percent. In June, Arcology reported that it had successfully tested its blockchain technology, which is used to integrate a distributed database to store data with speed and efficiency 100 times greater than some industry leaders.
Also during the period, the company’s subsidiary Pressland reported the launch of Newstotable.com, a digital publication focused on media trust and transparency.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Codebase Ventures is a client of the Investing News Network. This article is not paid-for content.