2 TSX Ether Stocks to Buy in 2022

Ethereum is one of the few cryptocurrencies that is expected to be there when the dust on crypto settles, making it a potential long-term holding.

| More on:

Image source: Getty Images

Cryptocurrencies are going through a rough patch now. Governments around the globe are taking a harsher regulatory approach to crypto, especially mining. The impact of crypto mining on different power grids became an environmental issue a while ago, but now it has turned into a power logistics issue.

The US is taking a different approach to crypto, and the Fed is trying to introduce government-backed cryptocurrencies, which may disturb the current crypto market in unprecedented ways.

Still, there are cryptocurrencies with enough market penetration and presence to stand this test and remain profitable for their investors in the long run. Ethereum is near the top of that list. And even though the best way to gain exposure to this crypto would be to hold it directly or buy an ETF, ether stocks can prove to be profitable alternatives.

A crypto miner

Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) is one of the largest crypto miners in the country and owns more self-mined Bitcoin (about 5,518) than any other publicly traded company in the world. But it can be considered an ether stock because it also mines Ethereum. The company owns and operates three mining sites, two in Alberta and one in Ontario.

Unlike other miners that are more equally focused on Bitcoin and Ethereum, Hut 8 leans more heavily toward the former. Still, the stock is likely to reflect extreme conditions for either crypto. The most recent spike in the stock offered started at the end of December 2020 and ended in 2021, growing by about 1,200%.

A crypto capital market company

Galaxy Digital (TSX:GLXY) is currently the most attractively valued crypto stock in the market, with a price-to-earnings ratio of just five. It can be considered ether stock thanks to its broad-spectrum connection to all cryptocurrencies. The company engages in multiple crypto-related activities, including mining, trading, and asset management.

Over the years, the company has grown its reach and capabilities at an incredible pace. It’s also an aggressive acquirer of complementary businesses and has absorbed three companies in the last two years alone. The growth it offered between 2020 and 2021 was even more impressive than the Hut 8’s. The stock grew over 3,800% between the 2020 and 2021 peaks.

Foolish takeaway

Both Ethereum/crypto-oriented tech stocks are nowhere near as down as they were in early 2020, the starting point of their most recent growth spurts. But the way the trajectory is moving, they might reach that point or a comparable number. If they do, buying them and waiting for the next bullish crypto run would be the smart thing to do.

The conservative approach, however, would be to wait for regulatory changes (regarding crypto) around the globe to take a more formalized shape.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Ethereum.

More on Tech Stocks

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

money goes up and down in balance
Tech Stocks

1 “Magnificent 7” Stock I’d Buy Over Nvidia Right Now

Here's why Meta Platforms stock is a better choice for Canadian investors compared to Nvidia in November 2024.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »