Bitcoin Nears Record Highs & Here Are Some Penny Stocks To Watch
Bitcoin prices are surging and just reached all-time highs of roughly $67,000. With that, the market’s risk-on approach is apparent, and that also includes other higher-risk asset classes like penny stocks. While crypto and stocks have their own appeal, some similarities put traders in the middle of a unique paradigm. This isn’t the same cryptocurrency industry that we saw a half-decade ago.
Bitcoin, Ethereum, dogecoin, and plenty of others aren’t as marginalized. Mainstream platforms including Robinhood (NASDAQ:HOOD), Webull, Tradestation, and, of course, Coinbase (NASDAQ:COIN) offer access to this digital ecosystem or currency trading. But, what has also emerged as a notable trend is the new interest in crypto and blockchain-related stocks. What’s more, major tech companies are piling in to gain exposure to this emerging market boom. Everyone from Paypal (NASDAQ:PYPL) to Tesla (NASDAQ:TSLA) is putting Bitcoin on their books to hedge. Better yet, this week saw the launch of the first Bitcoin Futures ETF (NYSE:BITO).
According to the ETF’s overview, “ProShares Bitcoin Strategy ETF is the first U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid, and transparent way. The Fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts.”
Bitcoin Penny Stocks To Watch
Now that cryptocurrency has reached the mainstream, mass appeal has centered around the potential beyond trading alone. With that, it may not hurt to take a look at some penny stocks with exposure to this digital space.
- Alpha Esports Tech Inc. (OTC:APETF) (CSE:ALPA)
- Powerbridge Technologies Co. Ltd. (NASDAQ:PBTS)
- Greenpro Capital Corp. (NASDAQ:GRNQ)
- NextPlay Technologies (NASDAQ:NXTP)
- Bit Brother Limited (NASDAQ:BTB)
- DMG Blockchain Solutions Inc (OTC:DMGGF) (TSX:DMGI)
Penny Stocks To Watch #1. Alpha Esports Tech Inc. (OTC:APETF) (CSE:ALPA)
You might not think that esports holds a place in the world of Bitcoin. But if you break the industry down to the basics, digital entertainment ecosystems have become an area of interest, especially when discussing payment processing. Alpha Esports and its GamerzArena platform aim to change how casual and professional gameplay is conducted.
According to the company, it boasts over 100,000 active users and a rapidly evolving ecosystem and has already partnered & worked with HUGE names in sports, entertainment, and education. These include professional sports & college teams like the New Jersey Devils, Notre Dame, Syracuse University, and Penn State, to name a few. Alpha is also the Official Online Gaming Portal of Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets. The company has also established relationships with media outlets, including Barstool Sports and ESPN Radio.
This week the company appointed a new President, Adam Morris. He has more than a decade of leadership in esports, gaming, and digital media to bring to the table. Morris is also co-founder of Oxygen Esports, which is another company Alpha has established a relationship with. While this expansion is significant for an emerging esports company, where does cryptocurrency or blockchain technology come into play?
Alpha & Crypto
Alpha is using digital tokens to monetize its esports platform. Its Bitcoin pegged Alpha Coin allows 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. Thanks to this jump in the price of Bitcoin, Alpha could be finding itself in the mix of bitcoin penny stocks to watch right now.
2. Powerbridge Technologies Co. Ltd. (NASDAQ:PBTS)
Powerbridge has been one of the cryptocurrency/blockchain penny stocks we’ve discussed previously. The company has been establishing its infrastructure over the last few months, which has included the purchase of 5,600 Bitcoin and Ethereum mining rigs back in August. Those rigs are set for delivery this month. Furthermore, the Software-as-a-Service & blockchain application company appointed a key industry expert, Jan Sun, to its Board toward the end of September. Sun has long-supported Ethereum and is a best-selling author of the book Ethereum Sphere,” which Ethereum founder Vitalik Buterin has recommended in the past.
Powerbridge & Crypto
While these endeavors were strong proof of progress, the latest milestones within the last few weeks have set PBTS stock on the watch list for many traders looking for exposure to this emerging arena. Powerbridge established a new Singapore-based crypto mining and digital asset subsidiary. This new Powercrypto company will establish a green, renewable energy crypto mining arm for the company. You also can’t ignore the launch of Powercrypto’s Hong Kong operations. This is another environmentally-friendly cryptocurrency mining initiative from the company, with an expected deployment of 2,600 mining rigs.
Read more: Are These Penny Stocks Worth Buying in Late-October 2021?
So, where Alpha Esports focused on folding in Bitcoin with its broader model, Powerbridge has taken a more direct approach. With that, however, is the risk run if volatility comes into Bitcoin and Ethereum. When companies are focused chiefly on mining, for instance, the market tends to move with the prices of underlying crypto. It’s excellent when Bitcoin is bullish, but it may be prudent to exercise caution when crypto prices are bearish.
Penny Stocks To Watch #3. Greenpro Capital Corp. (NASDAQ:GRNQ)
Shares of GRNQ stock have steadily climbed over the last few sessions on above-average volume. Thanks to a resurgence in cryptocurrency prices and overall sentiment, momentum came back into the market. Greenpro is a bit more diverse when it comes to the sector. The company specializes in financial technology.
It’s easy to speculate on FinTech companies and potential involvement with digital assets. However, in Greepro’s case, the latest string of milestones has placed GRNQ right in the mix with direct exposure.
Among other initiatives like spinning off tech incubators like SEATech Ventures Corp. (OTC:SEAV), Greenpro invests directly into digital asset exchanges. Last month the company took stakes in two projects, Link Capital and Samothracec International (ATM Online).
What’s more, CEO CK Lee has grown much more bullish on the prospects of this latest investment. “We are very excited to kick off our Pre-STO Investment Program with Link Capital and ATM online, both have excellent professional management team and are in businesses that are poised to capture significant upside from pent-up demand and decentralized finance momentum.”
4. NextPlay Technologies (NASDAQ:NXTP)
NextPlay is a company we discussed when it came to esports penny stocks to watch recently. Its HotPlay platform allows for gaming and advertising to mesh together. A few examples are things like passively skinning an avatar in branded gear or indirectly including a micro-billboard in the background of a game. However, more recent events paint a bigger picture of NextPlay’s portfolio of tech assets.
On October 4th, NextPlay revealed that it entered into a stock exchange agreement with NextBank International (f/k/a International Financial Enterprise Bank). This is a new subsidiary that was initially acquired in July. This gets NextPlay involved directly with the FinTech space. In particular, this includes engaging in opportunities in alternative asset management, including cryptocurrency and blockchain securitization.
This adds to the companies previous acquisition earlier in the year of Token IQ. This purchase offers capabilities for handling things like Kow Your Customer to help with regulatory requirements. NextPlay also explained that it plans to integrate the service into NextBank International as well. It’s also worth mentioning that its CEO picked up 1.99 million shares at an average price of $2 earlier this month. Thanks to the latest uptick in excitement stemming from Bitcoin and blockchain technology as well as recent insider activity, NXTP stock remains one to watch.
5. Bit Brother Limited (NASDAQ:BTB)
Some penny stocks with exposure to the crypto and blockchain space haven’t been as vocal as others. This can make it challenging to understand the outlook or plans that could be in the pipeline. In these cases, speculation tends to hold a much more significant role in dictating the pace and directional momentum for these types of penny stocks.
Bit Brother is a prime example of this. Sure, it’s been on the list of penny stocks to watch during Bitcoin price breakouts. However, not much has been vocalized by the company regarding digital assets or blockchain technology. Nevertheless, BTB stock has gained interest in the stock market today for its relationship to this industry.
Read more: 10 Best Penny Stocks To Buy Now According To Analysts
In Bit Brother’s case, it may lean more toward cryptocurrency utilization with retail transactions. Earlier this year, the company announced an LOI for acquiring 51% of Angelo’s Pizza with plans for expanding the century-old brand. Bit Brother discussed expanding the company’s reach into international markets. These would include Canada, Japan, South Korea, China, Singapore, and Australia. Where cryptocurrency comes into play (for now) is when it comes to payment.
According to CEO Xianlong Wu, “Along with our plans to expand a restaurant with decades of success to have a global reach, we will be able to continue to grow our Bitcoin payment business.”
6. DMG Blockchain Solutions Inc (OTC:DMGGF)
As the name suggests, DMG has a hand in the blockchain technology space. In particular, the company offers environmentally friendly end-to-end digital solutions for monetizing the blockchain ecosystem. This entails everything from data-center operations to forensics, analytics, and enterprise blockchain solutions.
Read more: Best Penny Stocks Under $1 To Watch As Bitcoin Cracks $58,000
This week, DMG announced its first significant update of October. The company reported multiple successful transactions with Zodia Custody. Zodia acts as a crypto asset custodian incubated by Standard Chartered with Northern Trust as a co-investor. Zodia will be using DMG’s Blockseer platform “Petra” from its Core+ suite of services. This new platform allows subscribers multiple ways of proceeding with transactions.
Petra allows everything from Know Your Customer (KYC) wallets and Anti-Money Laundering (AML) checks on transactions to enhance the safety and security of digital transactions. Regulatory and compliance initiatives have begun making waves in the cryptocurrency space. Companies like DMG have seen this as an early opportunity.
Are Bitcoin Penny Stocks On Your List Right Now?
Cryptocurrency, blockchain, and related assets – including stocks – carry plenty of risks. Since this industry is still very new and less regulated, plenty of catalysts send shockwaves through the market. These go both ways – bullish and bearish. Global economies, including China and Latin American countries, have differing views on the topic. Oversight bodies like the SEC also have their opinion.
Meanwhile, retail traders just want to make money. Understanding the things in play or out of play can help navigate these waters. That includes paying attention to significant
Read more: Best Short Squeeze Penny Stocks To Buy? 4 To Watch Right Now
If China outlaws digital mining, that may send bearish waves through the market. However, as we’ve seen, the newest launch of the BITO ETF was a bullish sign this week. Whatever the catalyst may be, understanding how to trade volatile assets is the first step in determining if Bitcoin penny stocks should be on your list right now.
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