Are These Penny Stocks Catching A Bitcoin Boost Today?
We see a slew of tech penny stocks jumping early on Monday. The vast majority of them have some type of exposure to cryptocurrency. While some of them have been more “surfacy” with their intentions, others are deeply rooted in the ecosystem itself. But why are bitcoin stocks jumping on Monday?
Two words: Elon Musk. Well, really it was Tesla but we know how vocal Musk has been about cryptocurrency. Whether it’s been Doge or Bitcoin, the cryptocurrency arena has been well-fueled by plenty of speculation. Now there could be some wider spread application for it. News surfaced that Tesla (NASDAQ: TSLA) purchased $1.5 billion worth of Bitcoin recently. This news, of course, sparked a nice rally in the price of the cryptocurrencies early in the morning.
Something else to note about the news is that Tesla also said it would begin accepting Bitcoin as payment in the near future. A valid use of cryptocurrency has been the biggest sticking point for those who’ve been bearish on the topic. A “pracical application” may now have been found via this latest update. What’s more, is that we know other industries are beginning to adopt things like Bitcoin as an alternative payment option.
Meanwhile, you can’t forget about other companies that’ve gotten behind crypto. Square (NYSE: SQ), Overstock (NASDQ: OSTK) and Paypal (NASDAQ: PYPL) are among the public companies that’ve helped boost awareness on the uses of Bitcoin & other cryptocurrencies. So with that in mind, it may not be a bad idea to have some bitcoin penny stocks on the watch list. Here are a few that gained momentum early on Monday
Bitcoin Penny Stocks To Watch
- SOS Limited (NYSE: SOS)
- ZW Data Action Technologies, Inc. (NASDAQ: CNET)
- Ault Global Holdings Inc. (NYSE: DPW)
- LM Funding America Inc. (NASDAQ: LMFA)
- AirNet Technology Inc (NASDAQ: ANTE)
Penny Stocks To Watch #1: SOS Limited
You may recognize SOS Limited from mentions over the last few months. In fact, it was one of the first companies we discussed during the new year. SOS focuses on IoT, blockchain, and artificial intelligence. Obviously, the blockchain aspect of this is what’s getting attention right now. Moreover, SOS announced a crypto mining strategy early on in 2021. After raising around $25 million, the company began rolling out its plan.
Last week the company entered into a framework agreement with Leibodong Hydropower Station in Hejiang, Luzhou, Sichuan Province. This is a location where electricity prices are much lower. Leibodong will supply SOS with electricity to its cloud crypto mining and big data center. SOS Chairman Yandai Wang commented, “SOS will continue to search for cheap and sustainable electricity to execute its aspiring cloud crypto mining strategy.”
#2: ZW Data Action Technologies, Inc. (NASDAQ:: CNET)
In December, ZW Data announced the completion of its Blockchain Integrated Framework for Retail Business, or BIF. This put a target on the company in terms of interest related to bitcoin & blockchain. Fast-forward a few months and now BIF is being put to work in real-world applications.
This week, ZW announced that it entered into a strategic agreement with China Digital Culture (Group) Limited. Through the BIF platform and by utilizing upgraded decentralized financial technology, the two will jointly operate IP data for e-sports and games. As we know, esports is something else that has been gaining in popularity, so there may be an additional interest from that sector as well.
Needless to say, CNET stock has been on fire this year. Since January 4, shares have climbed as much as 246% to highs of $4.75. After settling out around $2.60, it looks like the momentum is back in the market with CNET jumping back above $3 for the first time in weeks.
#3: Ault Global Holdings Inc. (DPW)
Ault Global, formerly DPW Holdings, is also one of the bitcoin penny stocks to watch early this week. The company has a number of different things going on that range from EV to electronics, and, of course, bitcoin. Last week the company announced that it would resume its Bitcoin mining operation through its majority-owned subsidiary, Alliance Cloud Services.
The company acquired 1,000 new S19 Pro Antminers from Bitmain, Inc. It also closed on the acquisition of a 617,000 square foot energy-efficient facility in Michigan. “At 50% capacity, the Facility is expected to generate annual gross revenues between approximately $54 million and $64 million,” the company said in its February release. Given the latest interest in Bitcoin right now, will DPW be on of the hot penny stocks on your list this week?
#4: LM Funding America Inc. (LMFA)
LM Funding is far more than “just another bitcoin stock,” but it may be worth following amid the hype. While the company hasn’t come straight out in saying it’s involved with Bitcoin, it has discussed to the topic.
Last month the company put out a post on its site. The title was “Is Bitcoin Coming to Your Association?” The article discussed cryptocurrency as a means to pay associations and even purchase homes. “While not all landlords will accept cryptocurrency, some welcome it due to some of the benefits of the cryptocurrency. Alvic Property Management in New York became the first property management company to accept Bitcoin, not just for rent but also maintenance payments.”
Furthermore, the company also said that “If you’re still looking for solutions to improve your process of collecting your members’ dues, you should look into using LM Funding.”
Aside from this speculation on Bitcoin, LM has been busy in the SPAC world as well. The company just closed a major IPO for its LMF Acquisition Opportunities, Inc. The company sold 10,350,000 units at a price of $10. The SPAC is centering itself our financial technology as a target.
#5: AirNet Technology Inc
Finally, AirNet is one you may remember from January when we were talking about bitcoin stocks to watch. The company had just announced an investment agreement with Unistar Group Holdings Ltd. AirNet gave Unistar 19% of the company’s outstanding shares in exchange for 500 computer servers designed for mining cryptocurrencies. With this, began a surge of interest in the company that was relatively quiet for most of 2020.
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Last week, the company continued progress and initiated an investment agreement with Northern Shore Group Ltd. AirNet did a similar transaction as its last investment deal. It issued approximately 19% of the company’s currently outstanding shares, to Northern Shore. In exchange Northern will deliver and transfer either 401 A10 Pro or 1,200 588/580-8 computer servers specifically designed for mining cryptocurrencies.
With the latest trend in Bitcoin, mining stocks could be on the radar early this week. Will ANTE be one of them?
Bitcoin Penny Stocks Are “Trendy” Right Now
It’s important to keep in mind that bitcoin stocks are trendy. This means that they will usually fall and climb as sentiment changes. I’m not saying that all penny stocks with exposure to crypto are bad or good for that matter. But understanding why these are moving the way that they are is important. For the most part, sector sentiment is driving hype. Thanks to Tesla and Elon Musk, however, it could be a bigger trend to take note of.