Last November, the price of Bitcoin surged to all-time highs of over $69,000, bringing plenty of speculatively bullish momentum into the markets. Whether you looked at penny stocks or some of the top fintech stocks in the market, a risk-on approach to trading was prevalent. Things have changed significantly since then, but the latest activity in the digital asset arena has investors recalibrating expectations.
Bitcoin hasn’t gone to zero, as some perma-bears had warned. While BTC hasn’t rebounded to all-time highs, there has been an overly bullish tone in the stock market this week. Where are cryptocurrency prices today? Bitcoin has reclaimed its $23,000 level while Ethereum has bounced back above $1,640 for the first time since June’s gap down. Thanks to another consecutive day of higher highs, the risk-on feeling is slowly coming into the picture for digital assets and cryptocurrency stocks.
Best Penny Stocks For 2022
As we head into the second half of the year, there are plenty of things to account for. The markets have faced headwinds from ongoing pandemic issues, geopolitical threats, economic troubles, and supply chain issues; you name it. This has led to lower markets during the first six months of the year. Now, with another half of the year ahead, it’s essential to keep in mind those previous trends and what could be coming in the future.
Next week there’s plenty of data to digest, including second-quarter GDP, jobless claims, home sales, personal income, and the July Federal Reserve meeting. So are we out of the proverbial woods yet? Since there’s no August Fed meeting, either, most likely by this time next week, we’ll have a gauge on market sentiment for the rest of Q3.
Regardless of what happens a week from now, traders are likely weighing short-term trends and how they’ll influence penny stocks. Since Bitcoin, Ethereum, and many cryptocurrencies are rallying in the market today, this article takes a deep dive at top penny stocks to watch with exposure to digital assets & cryptocurrency.
Penny Stocks To Watch
- Bit Digital Inc. (NASDAQ: BTBT)
- Bitfarms Ltd. (NASDAQ: BITF)
- Hut 8 Mining Corp. (NASDAQ: HUT)
- Nu Holdings Ltd. (NYSE: NU)
Bit Digital Inc. (NASDAQ: BTBT)
Several names on this list of penny stocks have direct ties to the price of Bitcoin. That’s because they are digital currency mining stocks. Bit Digital, for instance, does precisely that. In its quarterly update from June, the company reported mining revenue of $8 million and earned 194.48 BTC during the quarter.
In response to the results, management explained, “The first quarter of 2022 marked the first full quarter in which 100% of our mining fleet was on North American soil. With migration complete, our focus remains to deploy our fleet while remaining a leader in sustainability.”
With the company’s current miner redeployment program in place, Bitcoin, BTBT stock has been one to watch this month. One word of caution is that cryptocurrency prices are incredibly volatile, as with all penny stocks on this list. With that, a drastic shift in price could directly impact the value of shares of digital asset mining companies, including BTBT stock.
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Bitfarms Ltd. (NASDAQ: BITF)
Bitfarms is also closely correlated with digital asset prices and, as such, should be treated similarly when it comes to volatile trading.
Bitfarms recently published its Juen 2022 production update. The company mined 420 BTC at an average of 14 BTC/day. It also completed the building structure for its first 50 MW warehouse in Rio Cuarto, Argentina. Emiliano Grodzki, CEO of Bitfarms, also mentioned. “With construction on schedule, we continue to expect production to commence at this first warehouse in Q4 2022, and our plan remains to complete the second 50MW facility in Q1 2023.”
As BTC prices remain elevated, BITF stock and others could be some to keep a closer eye on.
Hut 8 Mining Corp. (NASDAQ: HUT)
As the name suggests, Hut 8 is another one of the bitcoin mining stocks to join this list.
In a July update, Hut discussed several highlights, including its Bitcoin holdings. Those increased by 328 through June 30th. Hut also has an “unencumbered” Bitcoin reserve of 7,406. At today’s price of roughly $23,000 per BTC, those reserves are valued at over $170 million.
The company also has several events later this year to keep in mind. The first is the timing of production at its new North Bay site. It was scaled up last month with roughly 5,800 miners, with additional scaling expected to continue.
Jamie Leverton, CEO of Hut, also emphasized the company’s long-term Bitcoin focus and said, “We are confident that our HODL strategy, coupled with the uncorrelated recurring revenue from our high-performance computing business, will allow us to continue to successfully navigate the current market.”
Nu Holdings Ltd. (NYSE: NU)
The Oracle of Omaha, Warren Buffett, has emphasized caution regarding Bitcoin and cryptocurrency. Berkshire Vice Chairman Charlie Munger has even said it is “very likely to go to zero” in public forums.
But here’s the interesting part: not only does Berkshire own a stake in a penny stock, but the company it owns this stake in has exposure to digital currency. The most recent Berkshire holdings report shows the firm with a 2.3% stake in the fintech company.
Nu Holdings isn’t a bitcoin mining company like the other on this list. It is a digital banking platform. In its May Q1 report, Nu recorded strong customer growth of 61% over the same period last year. The average revenue per customer also jumped significantly to $6.70. What’s more impressive is Nu’s gross profit rose triple digits (131%) to $294.1 million while revenue for the quarter climbed 226%, year-over-year.
The Oracle isn’t the only one bullish on NU stock. According to the latest NU stock forecast from New Street Research, the firm has the penny stock at Buy with a $7 price target.