FIVE PROFITABLE CRYPTO STOCKS CREATING VALUE FROM DIGITAL ASSETS

Cryptocurrency is an asset class known for its extreme volatility, divisive use-cases and short-term track record, which is all you need to know to treat it with caution.

That said, the market’s growth from a market capitalization of US$2 billion in 2013 to over US$3.7 trillion as of April 16, 2025, plus the institutionalization of the U.S. crypto reserve, put it well past the point of being dismissed, making valuation more important than ever when investing in the space.

While it can be difficult to determine the valuation of a cryptocurrency and the blockchain networks it facilitates payments for, given that these projects are private and not subject to financial disclosure, publicly traded crypto companies offer a more accessible avenue for investors seeking a clearer sense of how cash is moving in and out of a business.

Five profitable crypto stocks creating value from digital assets

Here are five Canadian-listed crypto companies, ordered by market cap, whose management teams have proven their ability to generate a profit, despite the industry’s high-risk nature, affording you a green light to delve deeper into due diligence:

・Neptune Digital Assets, market cap C$176.49 million.

・Sol Strategies, market cap C$300.49 million.

・Bitfarms, market cap C$614.69 million.

・Hut 8, market cap C$1.62 billion.

・Galaxy Digital Holdings, market cap C$5.27 billion.

1. Neptune Digital Assets, market cap C$176.49 million

Our first profitable crypto stock is Neptune Digital Assets, one of the first publicly traded crypto and blockchains companies in Canada. Its diverse set of specialties includes Bitcoin mining, proof-of-stake mining, the operation of blockchain nodes and decentralized finance, affording the company a risk-controlled approach to shareholder value creation.

And create value it has, growing net income from C$6.43 million in the quarter ended November 2023 to a record C$26.6 million the following year, driven by its diversified revenue streams and portfolio including sizeable investments in Bitcoin, Solana, Atom and Elon Musk’s SpaceX.

Neptune Digital Assets stock (TSXV:NDA) has added 321.21 per cent year-over-year and 1,290 per cent since 2020. Shares las traded at C$1.39.

2. Sol Strategies, market cap C$300.49 million

Sol Strategies is a Canadian investment company fostering the Solana blockchain as the go-to platform for next-generation decentralized applications. Decentralized applications provide financial, gaming and technology products and services to their users without the need for a middleman. Solana, for its part, is the sixth-largest cryptocurrency by market cap, coming in at C$92.2 billion as of April 16, according to Coin Market Cap.

The company earned C$6.61 million in net income in fiscal 2024 ending in September, following this up with C$3.23 million in Q1 2025, supported by its ability to provide institutional-grade exposure to Solana’s upside potential.

Sol Strategies stock (CSE:HODL) has added 1,250 per cent since shifting to its current corporate strategy in September 2024. Shares last traded at C$1.89.

3. Bitfarms, market cap C$614.69 million

Bitfarms operates 15 Bitcoin mining and high-performance computing centres across the world, including in Canada, the United States, Argentina and Paraguay, most of which rely on hydro-electric power under long-term contracts.

The company yielded US$15.17 million in net income in Q4 2024 thanks to a pivot into computing power, allowing it to capitalize on rising demand from AI developers.

Bitfarms stock (TSX:BITF) is down by 52.11 per cent year-over-year but remains up by 152.22 per cent since 2020. Shares last traded at C$1.14.

4. Hut 8, market cap C$1.62 billion

Hut 8 is an energy and technology provider specializing in digital infrastructure and compute at scale for the Bitcoin mining and high-performance computing industries. The company’s platform spans 1,020 megawatts of capacity across 15 sites in Canada and the United States.

Management closed out 2024 with a net income profit of US$331.88 million thanks to a strong 12,300 MW development pipeline and a reserve of over 10,000 Bitcoins – the world’s largest cryptocurrency by market cap – which currently trades for over C$116,000 and has appreciated by more than 1,000 per cent since 2020.

Hut 8 stock (TSX:HUT) has added 55.64 per cent year-over-year and 246.22 per cent since 2020. Shares last traded at C$15.58.

5. Galaxy Digital Holdings, market cap C$5.27 billion

Our final profitable crypto stock pick is Galaxy Digital, a globally recognized name in institutional access to digital asset trading, advisory, asset management, staking, self-custody and tokenization technology. The company also invests in and operates data center infrastructure in the U.S. for applications in AI and high-performance computing.

Thanks to its established presence across the crypto landscape, Galaxy has been able to make money when many of its less diversified competitors struggled to keep their heads above water. On the income statement, this translates to positive net income in four out of the past five fiscal years for a combined total of more than US$500 million.

The company held over US$5.6 billion in assets under management as of Q4 2024, in addition to over US$1.5 billion in crypto on its balance sheet, and benefits from a multitude of partnerships in place positioning it to generate billions in revenue over the next decade and beyond.

Galaxy Digital stock (TSX:GLXY) has added 30.96 per cent year-over-year and 1,459.60 per cent since 2020.

While crypto has led to high returns in the past, it remains uncertain whether this will carry on into the future because the asset class’s relationship with retail and institutional investors is still very much in flux. This means that your investment theses should inspire high conviction, like our quintet of profitable stock picks, before putting money to work.

To this end, make sure to stay ahead of the industry’s latest news and market indicators on Stockhouse to support data-driven decisions and keep your investments aligned with your financial goals.

You can also join the discussion and find out what everybody’s saying about these profitable crypto companies on the Neptune Digital Assets Corp., Sol Strategies Inc., Bitfarms Ltd., Hut 8 Corp. and Galaxy Digital Holdings Ltd. Bullboards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top image: Adobe Stock)

2025-04-16T18:07:51Z