Are These Crypto Penny Stocks on Your Watchlist Right Now?
With Bitcoin and Ethereum gapping up, several penny stocks are also showing potential. With crypto, we often see high volatility which can lead to both major gains and major losses. And while investing in crypto is an option for some, others prefer to find stocks with a correlation to cryptocurrency.
With penny stocks, there are dozens that are currently working on blockchain technology, crypto mining, or other new applications for crypto/blockchain. These stocks have varying levels of relation to cryptocurrency.
While the more pure-play crypto penny stocks will move simultaneously with the price of popular cryptocurrencies, others may be less volatile when crypto is moving. So, understand your own investing style and what your threshold for risk is. This is the best way to find penny stocks that fit your trading profile. In addition, it’s important to consider both the short and long term.
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For example, many investors are looking at renewable energy as a way to benefit from the future of crypto. Because mining cryptocurrency is extremely energy-intensive and for the most part utilities fossil fuels, many companies are transitioning to more renewable sources of crypto mining.
While this is just one example, it illustrates how your investment strategy should be future-proof. So, with all of this in mind, let’s take a look at some of the best crypto stocks to watch as Bitcoin and Ethereum gap up.
BTCM Stock Shows The Potential That Crypto Penny Stocks Could Have
While BTCM is technically no longer a penny stock at over $14, it was only a few weeks ago. And, this is a great example of how a company can leave penny stock status in only a short time frame. Up by around 10% today, 67% in the past five days, and 173% in the past month, BIT Mining is as its name suggests, a cryptocurrency mining company. The company operates crypto mining, mining pools, data centers, and interestingly enough, owns the BTC.com domain name.
Recently, it entered into an agreement to acquire a 7-nanometer crypto mining machine manufacturer known as Bee Computing. This will allow it to become fully vertically integrated in the near future. So, why have shares of BTCM stock spiked so high in the past few weeks? Well, to better understand this, let’s take a look at its Q2 2021 financial results, posted in mid-August. In the results, the company was able to grow its net revenue substantially to $445 million or so over $19.6 million in the first quarter.
This type of revenue growth is almost unheard of and is likely one of the main reasons for the massive growth with BTCM stock right now. In addition, it managed to bring in an operating income of around $1 million, compared to a non-GAAP operating loss of $5.2 million in Q2 2020. So, considering all of these positive numbers, BTCM stock could be worth adding to your watchlist this month.
3 Crypto Penny Stocks For Your Watchlist in September
- Metromile Inc. (NASDAQ: MILE)
- SOS Ltd. (NYSE: SOS)
- Ebang International Holdings Inc. (NASDAQ: EBON)
Metromile Inc. (NASDAQ: MILE)
You might not consider an insurance company a “bitcoin stock”. But new developments this year have put a spotlight on Metromile. Earlier this year, the company announced that it would allow policyholders to pay premiums using cryptocurrency. They could even receive claim payouts in crypto.
The premise of Metromile’s platform centers on a “pay-per-mile” program. Drivers pay only for what they use with the company’s real-time auto insurance policies billed per mile. The company also licenses this technology to other insurance companies, globally, supported by Metromile’s cloud-based software-as-a-service. But with the rise of cryptocurrencies like Bitcoin and Ethereum, MILE stock has gained attention from a different audience.
In a PR earlier this year, CEO Dan Preston said, “We believe in the transformative potential of blockchain technology. We are still in the early days of realizing how this shift to decentralized finance and cryptocurrency will create enduring advantages in insurance, but we believe that offering bitcoin as an option for premium and claims payments would be an important first step.”
With the rise of interest in digital assets right now, it isn’t surprising that MILE stock has gained some sympathy momentum recently. Aside from that, Metromile continues expanding its core model. The company recently integrated with Verisk’s (NASDAQ: VRSK) LightSpeed Auto to make the buying experience more streamlined. The platform digitally underwrites new clients using data analytics from Verisk to deliver fast results. With all of this, including the bitcoin angle, MILE could be one of the penny stocks to watch as the crypto-craze continues.
SOS Ltd. (NYSE: SOS)
SOS Limited is a tech penny stock that has pushed up by over 14% in the past five days. This brings its YTD gain to over 103%, which is no small feat. If you haven’t heard of SOS, this company provides data mining and analysis services to various companies globally. Its products include marketing data and tech for insurance companies, emergency rescue services, and more.
These products are then sold to healthcare providers, insurance companies, medical institutions, and more. Aside from its business of emergency rescue services, SOS Ltd. has gotten into the cryptocurrency industry in the past year or so. Because of this, we see that SOS is constantly changing and updating its business model to stay up to date with the present.
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In June, the company entered a joint venture agreement with Niagara Development to accelerate its Blockchain operations into the U.S. Niagara Development will provide up to 150MW of electricity, which will mostly be generated through renewable sources. And, SOS will provide the management, operations, and financing of the joint venture.
“We decided to acquire a sustainable power supply as far as possible, as we expand our blockchain operations into North America and look forward to successful operation of the joint venture. We continue to explore the possibility of acquisition of Niagara Development, Sherman Development LLC, and Park Falls Management LLC.”
Chairman of SOS, Yandai Wang
This big move is one example of SOS working to move into the North American crypto market. With restrictions on crypto mining tightening in China, SOS sees the U.S. as having a sizable amount of potential for crypto mining. Following this announcement, SOS stock has gone up in the market. Considering this, will SOS make your list of penny stocks to watch in September.
Ebang International Holdings Inc. (NASDAQ: EBON)
Ebang International Holdings Inc. is a tech penny stock that has a high correlation to the cryptocurrency industry. This company designs and develops Bitcoin mining machines and integrated circuit chips. It also provides mining machine hosting services and routine maintenance services.
In addition, Ebang sells various telecommunications products, such as fiber optical multiplexers. Because EBON has such close ties to Bitcoin, it can be quite volatile. But, its high correlation to crypto as mentioned above means that it can see correlative gains when BTC is rising in value.
On August 24th, the company announced the results of mediation on a sales contract dispute with one of its customers. An agreement between the company and the defendants was reached on August 23rd. This is always a positive sign, as legal troubles can drag on for years and have a negative impact on a company’s performance.
“According to the court’s mediation statement if the party responsible for payment and its guarantor fully performs, the Company will ultimately receive a total of RMB 272 million in payment. Among them, 20 million yuan has already been received.”
CEO and Chairman of Ebang, Mr. Dong Hu
So, while EBON has not released any major announcements in the past week or so, it has seen some solid bullish price action. Whether this is enough to consider it a penny stock to buy or not is up to you.
Which Crypto Penny Stocks Are You Watching Right Now?
With cryptocurrencies continuing to rise in value, many investors are searching for the best crypto penny stocks to buy. Although it can be difficult given the sheer number of cryptocurrency-related stocks out there, with the right research on hand, it can be much easier.
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If we consider that there is still plenty of untapped potential for the uses of crypto and blockchain tech, we see that the market could have a lot of room for growth. With that in mind, which crypto penny stocks are you watching right now?
