3 Blockchain Penny Stocks to Watch Right Now
Blockchain penny stocks have remained some of the most popular stocks to watch over the past year and a half. With the rise in the value of cryptocurrencies like DogeCoin, Bitcoin, and Ethereum during that time, many investors are looking for penny stocks that could benefit. Within the blockchain industry, there are a few specific niches that we can use to categorize the stocks on our watchlists.
First and foremost are the pure-play blockchain penny stocks. These are companies that mine cryptocurrency or produce blockchain-based technology. The majority of the time, these penny stocks are subject to higher volatility, as their prices can be highly correlated with the very reactive crypto market. But, because of this, there is also a great deal of opportunity to be had.
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Next, we have ancillary blockchain penny stocks. These are companies that use blockchain as the base for certain projects, or ones that are invested in crypto for example. This category is rather broad and encompasses companies that may work with blockchain, however, it is not their primary source of revenue. So, while there are more ways to further categorize the industry, these two should provide enough information for most traders. Considering this, let’s take a look at three blockchain penny stocks that are heating up right now.
3 Blockchain Penny Stocks to Watch in August
- Hut 8 Mining Corp. (NASDAQ: HUT)
- Bitfarms Ltd. (NASDAQ: BITF)
- Bit Digital Inc. (NASDAQ: BTBT)
Hut 8 Mining Corp. (NASDAQ: HUT)
One example of a pure-play crypto penny stock is Hut 8 Mining Corp. And, yesterday the company provided investors with a corporate update that is worth looking into. In the update, the company stated that for the month of July, it mined 300 Bitcoin, which puts it at a rate of around 9.7 BTC per day. In its reserve, Hut 8 held 4,123 BTC as of July 31st. And lastly, the company reported that it received and installed over 900 net new machines.
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One of the largest catalysts that is aiding Hut 8 right now is the decline of cryptocurrency mining in China. With regulatory crackdowns in the country, China has vastly lowered the amount of Bitcoin that it is mining in the past month or so. This has resulted in Hut 8 producing almost 50% more Bitcoin at a price much lower than previously.
“Since our IPO in early 2018, Hut 8 has been a significant producer of Bitcoin in North America. With the recent ban on Bitcoin mining in China, Hut 8 has nearly doubled its market share and is currently producing approximately 10 Bitcoin per day.
Reports suggest that the exodus of miners from China may take an extended period to resolve and global network hash rate could remain depressed well into 2022.”
Jaime Leverton, CEO of Hut 8
Considering this sizable and unexpected proposition, HUT stock could be worth keeping an eye on.
Bitfarms Ltd. (NASDAQ: BITF)
Up by over 10% at midday are shares of BITF stock. In the past five days, BITF has shot up by over 30%, which could be a result of the same catalyst that is pushing HUT stock right now. It’s worth noting that at over $6.55 per share, BITF is technically no longer a penny stock, however, it was only a week or two ago.
Today during pre-market, Bitfarms announced its production update and that it will be reporting its Q2 2021 financial results on August 16th. In the production results, the company stated that in July it mined 391 new Bitcoin, which set a record for the year. At this rate, it is mining around 12-13 BTC per day. In addition, it deposited almost $70 million in Bitcoin through August 1st.
“We are proud to have added 96% of our 2021 year-to-date Bitcoin mined to our long-term inventory program. As we work to execute on our growth targets, we anticipate adding more Bitcoins to our balance sheet at a faster rate than we have in the first half of 2021.”
he CEO and Founder of Bitfarms, Emiliano Grodzki
One of the aspects that separates Bitfarms from others is its commitment to renewable energy. Because energy consumption is one of the largest issues with Bitcoin mining, the company states that it uses 99% green hydroelectricity. This is big news and something that other companies are working on as well. So if you’re looking for an interesting pure-play crypto penny stock, BITF stock could be worth keeping an eye on.
Bit Digital Inc. (NASDAQ: BTBT)
Another bitcoin mining stock that could be worth watching is BTBT. At $14 per share, BTBT stock is no longer a penny stock, however, it was only two weeks ago. In the past month, shares of Bit Digital have climbed by a more than substantial 135% or so.
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This recent momentum can be again, most likely correlated to the steep decline in Chinese BTC mining. A few weeks ago, Bit Digital announced the expansion of its strategic collaboration with Digihost Technology Inc.
“By signing this agreement, we believe that Bit Digital has secured power and hosting sufficient to complete the migration of our current fleet to North America in full, and additional capacity to accommodate expected miner purchases. As previously announced, we anticipate significant purchase activity in the coming months due to spot market dislocation in China and our unique access to this market.”
The CEO of Bit Digital, Bryan Bullett
Based in New York, Bit Digital claims to own one of the largest fleets among all U.S.-listed Bitcoin miners with over 1.9EH. Its operations span the U.S. and Canada, and with this strategic collaboration in the works, it could work to improve its numbers significantly. With all of this in mind, is BTBT stock worth watching right now?
Crypto Penny Stocks Continue to Fly High
With the news out of China showing major promise for crypto penny stocks, the options right now are very widespread. In addition to this, the usefulness of blockchain technology is still largely untapped, posing a great opportunity for potential investors. So, as we move toward the future, which crypto penny stocks are on your watchlist?
