4 Penny Stocks For Your Watchlist As Cryptocurrency Flies High
On July 21st, penny stocks and many cryptocurrencies pushed up significantly. The day began with DogeCoin’s price up by around 10% and Bitcoin finally re-crossing the $30,000 threshold.
While trading crypto has been rather disappointing following the major rally several months ago, it looks like there may be a renewed bullish interest. Whether this is a result of investors taking advantage of low crypto prices or simply the return of the bulls, is it a great sign.
On Monday, July 19th, to many investors’ dismay, the S&P 500 had shot down by around 700 points, ending the day with the largest drop since October of last year. And, in that time many cryptocurrencies such as Bitcoin and DogeCoin had followed suit. While penny stocks, blue chips, and cryptocurrency all trade independently of one another, there can be some degree of correlation that we see.
This is especially true with penny stocks and crypto, as they both tend to be relatively cheap assets. It’s worth noting that they can be some of the most volatile investments out there, but if volatility is what you’re after, then it could be worth it for you. Considering this, let’s take a look at four penny stocks to watch as DogeCoin and Bitcoin push up.
4 Penny Stocks to Watch With Cryptocurrency Pushing Up Today
- SOS Ltd. (NYSE: SOS)
- Ebang International Holdings Inc. (NASDAQ: EBON)
- Summit Wireless Technologies Inc. (NASDAQ: WISA)
- Canaan Inc. (NASDAQ: CAN)
SOS Ltd. (NYSE: SOS)
SOS Ltd. is a commonly discussed penny stock when it comes to cryptocurrency. While the company began as a provider of emergency service-based tools, it quickly moved into the crypto and blockchain market. This is due to the vast and largely untapped potential that exists there. SOS is actively working to expand its reach into both blockchain technology and pure-play cryptocurrency mining. It also offers cloud computing, AI, satellite, 5G networks, and much more.
Only a few weeks ago, the company announced a joint venture with Niagara Development LLC. The goal of this venture is to embark on several new crypto-currency mining operations. In addition, the pair will build an international standardized “Digital Supercomputing Custody Operation Center.” SOS will manage all operations relating to this facility, and Niagara will provide as much as 150 MW of electricity from both renewable and non-renewable sources.
“SOS continues to increase its development of comprehensive blockchain solutions for digital trade, digital finance, and other industries. We decided to acquire a sustainable power supply as far as possible, as we expand our blockchain operations into North America.”Yandai Wang, Chairman of SOS
Considering its role in the crypto industry and exposure, as a result, SOS stock could be worth keeping an eye on.
Ebang International Holdings Inc. (NASDAQ: EBON)
Another pure-play crypto penny stock to watch right now is Ebang International Holdings Inc. Through its subsidiaries, EBON develops a wide range of products aimed at the crypto and computing market. This includes circuit chips for Bitcoin mining machines, hosting services, fiberoptic communication products, and much more. Additionally, under its Ebit brand, it sells Bitcoin mining machines.
One thing to keep in mind is that EBON stock is very volatile. Just like Bitcoin, prices for EBON can fluctuate greatly within any given trading day. And, this is especially true as the price of cryptocurrency moves as well. In the past few days, shares of EBON stock have shot up by over 5%, despite being down on the overall year. And while Ebang does not release a great deal of news, its price is often highly correlated to that of Bitcoin and other cryptocurrencies. With all of this in mind, do you think that EBON stock is worth investing in or not?
Summit Wireless Technology Inc. (NASDAQ: WISA)
If you haven’t heard of WISA stock yet, its almost 15% gain on July 21st, could make it worth watching. While Summit Wireless Technology is not a pure-play cryptocurrency stock like the others mentioned above, it does work in the tech industry. And often, we will see tech penny stocks move in sympathy with blockchain or crypto stocks. For some context, Summit Wireless Technologies is a consumer electronics company. It creates wireless sound technology used in home entertainment systems and next-gen devices.
The company claims to work with some of the largest tech and sound brands in the world including Xbox, Bang & Olufsen, Klipsch, and more. And today, it made an exciting announcement that is likely the cause of its decent uptick. The company stated that its subsidiary, WiSA LLC, had launched a new SoundSend Certified Program that will allow TV producers to utilize the WiSA SoundSend wireless audio transmitter. Toshiba will be the first to use this which its REGZA brand of TV.
Yasuhiro Ishibashi, Director of TVs REGZA R&D Center, stated that “WiSA continues to pave the way for emerging wireless audio category and TVS Regza Corp. is excited to be the first TV brand to receive WiSA SoundSend Certification on several new 2021 models.” Considering this update, is WISA stock worth keeping an eye on in the coming weeks?
Canaan Inc. (NASDAQ: CAN)
Another decent gainer of the day so far is CAN stock, pushing up by around 11% at midday. While CAN stock is technically no longer a penny stock any over $6.20 per share, it sat in the $5 range only a few weeks ago. Canaan Inc. is a provider of high-performance computing solutions including computer chips, AI chips, and more. A few weeks ago, it announced the release of its independently designed Kendryte K510 chip.
“The Kendryte K510 chip is the result of two years of work by our R&D team to further innovate and optimize our core chip architecture. With upgraded machine vision and improved programming flexibility, the Kendryte K510 can better address the demands of mid-to-high end application scenarios.”Mr. Nangeng Zhang, CEO of Canaan
In addition to this, Canaan is a producer of Bitcoin mining machines, as well as other, energy-efficient crypto mining solutions. Because of this, it is considered a leader in the blockchain and crypto industry. With its pure-play role in the crypto mining world, it’s no wonder why shares of CAN stock shot up by over 11% today. However, as with the other penny stocks on this list, traders should consider how volatile CAN stock is before investing.
Crypto Penny Stocks Continue to Ride Bullish Wave
While today’s bullish crypto wave, investors are once again fired up about the potential of blockchain right now and in the future. And with so many different crypto penny stocks to choose from, it can seem like a daunting task to pick only a handful.
But, as stated several times, investors should thoroughly understand that crypto and stocks relating to it are very volatile. Despite any potential they may have, prices tend to fluctuate due to the highly speculative nature of cryptocurrency. But, if volatility is what you’re after then blockchain penny stocks could be worth looking into.