Bitcoin & Blockchain Stocks Are Pushing Higher This Week
Some of the technology penny stocks have seen a surge recently. Specifically the ones with exposure to cryptocurrency and blockchain tech. Unless you’ve been living under a rock the last few months, Bitcoin prices have continued making new all-time highs. In fact, this week BTC broke above $38,000 for the first time, ever. While some continue feeling the FOMO of not getting in when it was trading at just $4,000 a coin, others have focused on things that are beginning to experience a positive impact from the move in general.
Namely, bitcoin stocks or any company with exposure to the ecosystem is in focus. This could be bitcoin mining companies, blockchain technology companies, or even hardware manufacturers offering the “picks and shovels”. Needless to say, many of these stocks are surging recently.
Some are now calling this the “new gold” and considering the circumstances, the argument could hold a bit more weight this time around. For instance, the shiny yellow metal rallied from $1,562 to highs of $2,089 last year. This jump of 33% was big for gold prices. But looking at the move in bitcoin, its 300%+ jump in 2020 is clearly unmatched by precious metals. Now, do cryptocurrencies hold the same type of value as gold? It depends on who you ask.
“While similarities exist between gold and Bitcoin (e.g., store of value, price determined by supply and demand), gold has been recognized as a store of value for millennia. Bitcoin has been recognized as a store of value for less than a decade.”Jim Powers, Director of Investment Research at Delegate Advisors to Forbes*
Bitcoin Stocks To Buy Now?
- Xunlei Limited (XNET Stock Report)
- ZW Data Action Technologies Inc. (CNET Stock Report)
- AirNet Technology Inc. (ANTE Stock Report)
Best Bitcoin & Blockchain Stocks To Buy [or sell] #1: Xunlei Limited
Xunlei had been one of the beaten-down penny stocks in tech for months. However, at the end October, things began leveling out with November establishing support around $2.60 early on. XNET stock was a very volatile one to watch that spiked to highs of $3.80 but continued to come back to that relative area of support between $2.60 and $2.75. What’s more is that the tail end of December saw a nice surge in trading activity, much more so compared to prior weeks. I won’t bore you with the history lesson on this because this week everything changed.
Xunlei is a cloud and blockchain technology company in China that hasn’t reported much news. However, the attention that this segment of the tech sector has received has helped XNET stock in recent weeks. During the third quarter, the company launched Blockchain-as-a-Service or BaaS platform for its Blockchain business.
The platform is designed to “empower enterprises and developers and free them from dealing with complex Blockchain infrastructure issues” when developing Blockchain applications. In its most recent corporate filing, the company reported strong, year-over-year results with a big jump in EPS with sales come up slightly shy of last year’s figures.
Mr. Jinbo Li, Chairman and Chief Executive Officer of Xunlei, stated that “Xunlei delivered a quarter of solid execution. We are encouraged by meaningful improvements across several financial and operating metrics, including an 87% sequential improvement in our bottom-line….And we are optimistic that the positive momentum would be carried into the fourth quarter of 2020.”
Best Bitcoin & Blockchain Stocks To Buy [or sell] #2: ZW Data Action Technologies Inc.
You might remember this company from earlier in the year. It was known as ChinaNet Online Holdings. Now as ZW Data, the company focuses on online advertising, precision marketing, and data analytics. Last month, the company completed its Blockchain Integrated Framework for Retail Business, or BIF.
“We anticipate BIF will be officially launched in 2021 and we expect to present a credible, traceable, and highly secured blockchain application infrastructure platform to our retailer users.”Handong Cheng, Chairman and Chief Executive Officer of ZW Data
Adding to this, the company inked a partnership deal with Yujun Capital this week. Its subsidiary, Yujun Digital Technology Co. will provide online branding and management service to ZW’s merchant clients. Yujun’s capabilities are expected to complement ZW’s blockchain technology platform. Together the two will build a management and consumer service platform for its merchant clients utilizing the blockchain tech.
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In response to these developments, Handong Cheng further explained the new dynamic. “ZW Data and Yujun Capital will build a five-dimensional platform with digital product selection, brand content marketing, digital growth, private domain traffic operation, and brand digital intelligence,” Cheng said. “Through integration of capital, strategy, brand, private domain, data and intelligent solutions, we strive to assist our clients in their brand building with blockchain technology. In particular, we hope to promote growth of national brands in the post-pandemic era when China’s economic policy shifts to domestic consumption.”
Best Bitcoin & Blockchain Stocks To Buy [or sell] #3: AirNet Technology Inc.
AirNet shares had been climbing for the better part of the last quarter. However, this wasn’t on much market action. While the company provides digital media in China, the more recent events have it wrapped into the crypto surge. This week, AirNet entered into an investment agreement with Unistar Group Holdings Ltd. Via this deal, AirNet gave Unistar 19% of the company’s outstanding shares in exchange for 500 computer servers designed for mining cryptocurrencies.
With the acquisition of these servers the company explained that it shows a “determination to create values for its investors along with its drive for technological innovations.”
Now, what I can say is that for a company previously providing “in-flight solutions for connectivity” to now have a position in crypto mining, it has an air of something that we saw in 2018. While I’m sure this will be a focus for crytpo stock traders, it’s important to keep the risks in mind. Will ANTE stock ultimately become a “crypto mining stock” now?
“After careful evaluation of this opportunity, the Company is convinced that it is the right time to take another leap in technological innovation and form a new line of business embracing the mining of cryptocurrencies and future applications derived upon cryptocurrencies,” explained Herman Guo, the Chairman, and CEO.
So far, the excitement has continue pushing momentum in the stock. If it’s on your list right now, keep these topics in mind.