Crypto Prices Are Booming Putting Penny Stocks In Focus
If there’s one thing we’ve learned by watching the rise, fall, and rise2.0 of Bitcoin, tech stocks love to move in sympathy with the cryptocurrency. What has typically been a boost for blockchain or “bitcoin stocks” has recently become a much bigger catalyst when other things are factored in.
This week, we’ve seen a wild, choppy series of trading days in the stock market. Today, the bulls are clearly back in control, and tech has become a driving force. As they say, “The trend is your friend.” With that, it doesn’t hurt to take a peek at a few leading catalysts in the stock market today. Crypto is clearly one of them as Bitcoin and Ethereum prices surge.
Tech is another possible catalyst. Then you’ve got a bullish picture being painted by small-cap stocks. The Russell 2000 Small-Cap ETF (NYSE: IWM), for instance, is red hot. Rising over 2.8% so far, it is outpacing the intra-day moves of the S&P 500 (NYSE: SPY), Dow Jones (NYSE: DIA), and Nasdaq (NASDAQ: QQQ) ETFs combined.
So, seeing this as the trend, why not look at some small-cap tech stocks right now? In this article, we’ll look at a few companies playing in the sandbox of tech, crypto, and other niches. Will they be on your list of penny stocks to watch heading into the week next week?
Tech Penny Stocks To Watch
- Alpha Esports Tech (OTC: APETF) (CSE: ALPA)
- Elys Game Technology (NASDAQ: ELYS)
- Sphere 3D Corp. (NASDAQ: ANY)
Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
One of the emerging industries that crosses off the check-boxes in tech, crypto, entertainment, and sports is Esports. Believe it or not, this industry could be one of the most forward-thinking when it comes to taking advantage of the virtual ecosystem that has begun to materialize thanks to the pandemic. How? If you remember, back in 2020, when things shut down, digital payment, virtual socialization, and alternatives to traditional sports all gained a place in the mainstream. Fast-forward to the present, and these trends have continued to evolve and expand into somewhat of a hybrid model. We now have traditional entertainment crossing over with the virtual trends that emerged during the pandemic.
Alpha Esports has capitalized on this situation in several ways. First, its esports platform and gaming ecosystem are spearheaded by the company’s GamerzArena platform. The company’s platform is based on building an active community of dedicated gamers. Not only can they play and watch games alongside their peers. They can compete in tournaments to earn prizes through daily tournaments. Since going public earlier this year, Alpha has focused on strategically aligning with some of the top names in sports and Esports with a goal of rapidly expanding its competitive footprint. In fact, earlier this week, Alpha announced a partnership with Oblivion Esports to provide a competitive platform to gamers.
GamerzArena will become the exclusive platform for all of Oblivion’s online esports events, where the Company will host and operate a variety of gaming tournaments under the Oblivion brand. This is just one of many recent deals Alpha has inked over the last few months (See more on Alpha’s deals here). Furthermore, this is just one facet of Alpha’s model.
A Crypto Opportunity In Esports?
In line with the latest surge of interest in all things “crypto,” it may be important to discuss Alpha’s exposure to this niche. As DeFi has come to the forefront of tech and monetization, Alpha has begun embedding itself into this segment. Its Bitcoin-pegged Alpha Coin has been created to allow users to enter contests and tournaments while also giving winners the ability to redeem their Alpha Token winnings for local currency or purchases in the GamerzArena store.
Elys Game Technology (NASDAQ: ELYS)
Sticking with the Esports trend, Elys Gaming is another one of the companies gaining some steam right now. Elys has developed an interactive gaming and sports betting technology platform. One of the budding segments that have come with the evolution of esports is “iGaming.” This is basically sports betting via an online platform.
This month the company reported its latest round of quarterly earnings results. While earnings per share missed estimates, Elys beat on sales. Betting handle increased by more than 100% both during Q2 and year to date. Meanwhile, revenue increased by more than 150% during the second quarter with year to date up over 80%. “Sportsbook operations continued to perform remarkably well resulting in consecutive double-digit hold that is reflected by robust increases in handle and record revenues of $25.8 million for the first half of the year and $11.7 million for the second quarter that exceeded our expectations,” explained Michele Ciavarella Elys’ Executive Chairman.
What’s more, the company’s recently completed acquisition of USBookmaking opens things up for Elys to sportsbook opportunities in the U.S. in 4 states to start.
“Over the next six to 12 months, USBookmaking expects to integrate our recently debuted US Elys Gameboard system on its robust pipeline of new operators, culminating with the conversion of existing operators as such contracts expire in late 2022.”
Sphere 3D Corp. (NASDAQ: ANY)
Another one of the cryptocurrency-related companies on this list of penny stocks is Sphere 3D. It’s been a company discussed many times previously and has continued to uptick thanks to rising cryptocurrency prices.
What does Sphere 3D do? It’s not so much of what it does but what it’s in the process of doing. Earlier this summer, Sphere and Gryphon Digital Mining announced a merger. Since then, ANY stock has gotten a boost in momentum. This merger is expected to close in the third quarter of 2021. So timing has played its own additional role in speculation surrounding the penny stock.
Earlier this month, the company reported stronger year-over-year earnings, which helped boost sentiment surrounding ANY. The company also struck a deal with Gryphon to buy another 250,000 Certified Emission Reductions. These will support the combined company’s ESG commitments following recent plans to “substantially increase” cryptocurrency mining capacity.
With the help of more upbeat sentiment in the stock market today related to cryptocurrency prices, ANY stock has followed the bullish trend that has become apparent recently.
Are Tech Stocks On Your List Right Now?
The tech industry is vast and includes plenty of different niches. Crypto and esports are just a few of the newer, emerging segments attracting attention from investors right now. Both are still in the early stages of market penetration and user adoption. That could mean there could be much more to look forward to as industries evolve. With the rise of bullish sentiment, in general, right now, both higher risk industries have gotten an interesting boost in the market this week. Will any tech stocks be on your list heading into September?
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