The Ukraine invasion by Russia earlier this month has sent a shockwave through the market. Not only have growth stocks been affected by significant uncertainty and doubt, so have things like energy stocks for the exact opposite. But unlike most “wartime stocks,” the Russia-Ukraine conflict hasn’t only shed a spotlight on energy as a bull case.
Cryptocurrency, including majors like Bitcoin and Ethereum, are growing in popularity. The price of both cryptos soared as Russian banks were removed from the SWIFT system and Ukraine’s monetary system tumbled.
Over the weekend, more attention focused on digital assets as a means to bypass issues faced by actions like these. Donations in cryptocurrency, including Bitcoin, flooded the marketplace. The official Ukraine Twitter account even tweeted out that it was accepting donations to support the country:
With this backdrop, cryptocurrency stocks caught a nice boost to start the final day of February. What’s more, we looked at the options chains for some of these “Bitcoin penny stocks” to see that even bigger bets were being placed on the future potential of specific stocks. Here are four of them gaining ground in the stock market today and recent events that have brought more attention to the companies this year.
Bitcoin Penny Stocks To Watch
- SOS Limited (NYSE: SOS)
- Bitfarms Ltd. (NASDAQ: BITF)
- Bit Digital Inc. (NASDAQ: BTBT)
- Meta Materials (NASDAQ: MMAT)
SOS Limited (NYSE: SOS)
Thanks to an uptick in Bitcoin prices, plenty of cryptocurrency and blockchain technology companies are turning heads right now. If you look at the SOS options chain, you’ll see what I’m talking about. In particular, the March 4th expiration date Calls at the $1 strike price saw some unusual options volume today.
SOS manages big data utilizing blockchain technology. Specifically, the company provides data and technology solutions to insurance and emergency rescue services. While there haven’t been many new updates from the company recently, most of the interest seems to have centered around the North American Super-Computing and Hosting Center announced late last year. Yandai Wang, CEO, and Chairman of SOS, initially discussed this project as “an important part of SOS’s efforts to create its own blockchain technology-based ecosystem. We look forward to launching our Super-Computing and Hosting service business in Wisconsin in the first quarter of 2022.”
As the first quarter continues and we enter its final month, SOS could be on the list of penny stocks to watch for more than just a few industry-related reasons.
Bitfarms Ltd. (NASDAQ: BITF)
Shares of Bitfarms have also followed suit on Monday with a move higher. The Bitcoin mining company recently entered into a multi-million dollar equipment financing deal last week to bring non-dilutive capital to the company. Accordingly, this is expected to allow Bitfarms to grow and free up working capital.
Bitfarms has five industrial-scale facilities in Quebec, one in Paraguay and another in Washington state using hydropower to mine digital currencies. Bitfarms’ growth has attracted the attention of fund managers as well. Several of the leading cryptocurrency ETFs including BLOK, WGMI, and others, currently report a portion of their holdings in BITF stock.
Looking at the current options chain, there’ve been some unusual actions taken on Monday. Specifically, the March 18th $5 Calls saw a jump in volume with nearly 1,300 contracts traded before the lunch hour.
Bit Digital Inc. (NASDAQ: BTBT)
Another digital mining company, Bit Digital, has traded higher to kick-start the week. BTBT stock has now managed to jump from lows of $3.16 last Thursday to $3.98 just before Monday’s lunch hour session. Bit Digital has taken things a step further than solely mining and focused on the environmental impact that cryptocurrency mining can have.
In its last update, the company reiterated its track record stating plans to submit written testimony to the New York State Senate Standing Committees on Environmental Conservation, Energy, Telecommunications, and Internet and Technology. It also had plans to introduce a similar document to Members of Congress.
In a January press release, Bryan Bullett, Chief Executive Officer, Bit Digital, explained, “It is at the core of what we do and who we are because Bit Digital understands that to be successful, our operations must drive innovation and economic opportunity for all members of society—while doing so in a sustainable and eco-friendly manner.”
As far as options activity is concerned, BTBT stock saw a jump in its March 4th, 2022 calls at the $4 strike. By lunch, more than 2,200 contracts had already been traded. This far-outnumbered the open interest of just 724 contracts.
Meta Materials (NASDAQ: MMAT)
It isn’t just digital currencies making waves in the stock market today. Meta Materials has gained ground as discussions ramp up relating to metaverse activity in the virtual ecosystem. The company develops functional materials and nanocomposites related to metaverse hardware.
Its ARfusion for Smart Augmented Reality Eyewear, for example, provides wearable AR technology in a lightweight format such as glasses. Speculation has become a more significant driver for MMAT stock. It’s also worth noting that the company will deliver its Q4 and full-year 2021 results later this week. If MMAT is on your list of penny stocks to watch, keep March 2nd in mind for an official webcast and March 1st for the official results to publish.
Bullish sentiment hasn’t solely been echoed in the stock market heading into earnings. The options market has also experienced some bullish activity. The March 18th expiration date is where the action’s at right now. The $2 and $3 strikes saw a jump in trading activity, with over 1,800 contracts traded for each.
Furthermore, open interest for nearly every strike price on the Call side of the chain shows more open interest than nearly ever Put option strike. Whether this is a hedge against more downside on an earnings beat or a straight-up bullish bet on the stock is to be seen. But it is something that may be worth noting if MMAT is on your watch list.
The Best Penny Stocks To Buy
When putting together your list of penny stocks to buy, it’s good to know about different potential catalysts. The news alone isn’t enough in most cases. But looking at things like options volume, analyst sentiment, and general market or industry trends are ways to add more depth to your research process. Given the state of the Russia-Ukraine conflict, cryptocurrencies and related companies are back in focus. These are a few of the names that are gaining momentum in the stock and options market right now.
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