Bitcoin Rally: These 2 Blockchain Stocks are SOARING

In November, I had discussed whether Bitcoin could go back to all-time highs before the end of 2020. Bitcoin surged above the $ 19,000 mark in December. Today I want to explore what lies behind this bull run. Furthermore, I want to look at two blockchain stocks on the TSX that are worth considering as digital currencies are on the rise again.

What’s behind Bitcoin’s late 2020 rally?

Bitcoin had been a volatile holding into this year. The COVID-19 pandemic has destabilized the domestic and global economy. This has driven investors into alternative asset arms such as gold. The yellow metal dominated as a safe haven in spring and early summer. However, later in the summer and beyond digital currencies have stormed back.

Cryptocurrencies were under tremendous regulatory pressure after the big run in 2017. Another positive in 2020 has been the mainstream embrace of Bitcoin and other digital currencies. PayPal, the world’s most widely used payments buyer, moved into the digital currency space this fall. In November, it announced that its users could now buy, sell and hold cryptocurrencies through its accounts.

Bitcoin has put up an impressive run, but this highly speculative asset is still a risky bet for investors. For those looking for a more conventional look while also betting on digital currencies, there are some exciting blockchain stocks available on the TSX.

Two blockchain stocks that win during this crypto bull run

Back in July, Bitcoin had gained some momentum, and I had targeted two major blockchain stocks on the TSX. Now is a good time to revisit those equities today.

Hut 8 Mining (TSX: HUT) operates as a cryptocurrency mining company on the domestic front. Its shares have climbed 71% over the past three months as of December 15. The stock is up 37% year-over-year. Naturally, cryptocurrency miners have benefited from a Bitcoin bull run and a growing interest in digital currencies worldwide.

This company released its third quarter 2020 results on November 12. It ordered Bitcoin equipment for 275 PH / s, and installed 154 PH / s using 6.7 MW in Q3 2020. The rest is expected to be installed by the end of the year. year. Hut 8’s strategy of mining and holding Bitcoin has paid dividends given the significant momentum the digital currency has gained this year.

HIVE Blockchain Technologies (TSXV: HIVE) is another top blockchain stock to focus on in Canada. This company is another cryptocurrency miner operating in Canada, Sweden and Iceland. These countries offer cheap power that is ideal for Bitcoin miners. Shares of HIVE Blockchain have soared more than 1,700% in 2020. The stock is up 244% month over month.

On November 6, HIVE announced increased Bitcoin mining production with the purchase of over 1,200 next-generation miners. Obviously, HIVE is positioning itself to benefit in a big way from Bitcoin’s new momentum. While Bitcoin is on the run, the two crypto miners are about to make shareholders smile.

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Fool contributor Ambrose O’Callaghan has no place in any of the stocks mentioned. The Motley Fool owns and recommends shares of PayPal Holdings and recommends the following options: long January 2022 $ 75 calls on PayPal Payments.