Whether you’re trading penny stocks or higher-priced stocks reporting earnings this week, everyone likes to identify trends. It might be something like stocks with news in a similar niche. It could also be a bit more obscure, like cheap stocks with higher short interest. Whatever the trend may be, chances are that retail traders are paying attention.
Other than mega-cap tech earnings this week, cryptocurrency prices are back on the move. Following a slump last week for leading digital assets like Bitcoin and Ethereum, this week is a different story. On Wednesday morning, Bitcoin prices climbed to reestablish their position above the $28,000 level. While Ether and the top 10 non-stablecoin cryptocurrencies experienced gains, they were insufficient to offset the losses accumulated over the previous week.
However, a second consecutive day of momentum in Litecoin resulted in it emerging as the top performer. It was driven by optimism surrounding the upcoming halving event, which is still more than three months away. This comes as concerns regarding the U.S. banking system resurfaced on Tuesday, potentially contributing to the increase in cryptocurrency prices.
– 10 Top Penny Stocks To Watch Under $1
What this could mean for traders in the stock market today is heavier attention on companies with exposure to the cryptocurrency market. Mining companies, infrastructure companies, and even energy companies could be expected to experience volatility due to the latest moves in Bitcoin. Today we look at a handful of cheap stocks to watch that fit these criteria.
Penny Stocks To Watch
Sai Tech Global Corp. (NASDAQ: SAI)
Sai Tech provides zero-carbon energy solutions to offer its customers clean computing services and decentralized transaction systems services. Thanks to the rise of interest in cryptocurrency and decentralized finance, companies with exposure to this niche are gaining ground. With the appointment of a new CTO and an additional product being launched, SAI stock has come back into focus. SAI.TECH announced CTO and COO appointments for its new ULTIAAS product line. It will focus on clean computing based on liquid cooling and chip waste heat utilization technology.
“We are proud to launch our new ULTIAAS products and the news of SAINODE project. In the future, we are looking forward to bringing the market’s most clean and efficient bitcoin mining infrastructure solutions and applying them to our sustainable datacenter projects like SAINODE, together showing the world a new generation of cryptocurrency datacenter ecosystems,” explained CEO Arthur Lee.
Hut 8 Mining Corp. (NASDAQ: HUT)
Bitcoin and Blockchain penny stocks are climbing higher in the stock market today. Hut 8 is another one of the companies benefiting. It’s a digital asset mining company that recently reported the latest operations update from March. The company mined 131 Bitcoin at a rate of roughly 4.2 BTC daily. Meanwhile, the total Bitcoin balance held in reserves as of the end of March was over 9,130.
“While we met key operational milestones in Medicine Hat in March, we continue to be laser-focused on two things,” said Jaime Leverton, CEO of Hut 8.
It’s important to note that many Bitcoin stocks moving in the stock market today are tightly tied to the underlying price of BTC and other digital assets. That means sentiment can quickly shift depending on what the prices of the assets are doing, as I’m sure many of you have seen the last time BTC crashed.
CleanSpark Inc. (NASDAQ: CLSK)
CleanSpark is another one of the Bitcoin stocks to watch right now. Like Hut, it also mines Bitcoin. In its latest mining update for March, the company reported that it mined 598 BTC with a fleet of roughly 67,700 miners. This is in motion as the company continues its expansionary plans in Washington.
“We are on schedule in Washington,” said Scott Garrison, VP of business development for the company. “One building is completely done and ready for miners, with the other buildings in various stages of construction, each advancing according to schedule. Our teams and partners, which include the utility, city, and various construction firms, are working hand-in-hand for the build.”
Earlier this month, CleanSpark announced plans to double its mining capacity. In the process, it will purchase 45,000 new Antminer S19 XP machines. That will be in addition to a 20,000-machine purchase announced in February.
Even with this as the case, CLSK is following a similar trend to HUT stock. Therefore, if it is on your watch list, having BTC prices next to it could be important for reference.
– Top Penny Stocks Chart Patterns to Use to Profit
Stronghold Digital Mining Inc. (NASDAQ: SDIG)
Stronghold is another Bitcoin mining company. However, it focuses on environmentally friendly operations. It has become a hot topic for analysts looking at ESG activities in digital currency businesses. According to some market analysts, higher energy usage for traditional mining operations has put stress on an already fragile power grid.
Companies like Stronghold have taken the proactive approach of mitigating this strain through creative strategies. As a result, firms, including B. Riley Securities and Compass Point, have upped their price targets on the penny stock. B. Riley boosted its $0.50 target to $1, while Compass increased its $1.50 target to $2.25.
Stronghold recently closed a $10 million funding round to purchase additional Bitcoin miners. Insiders have also participated by investing in the company. A form 4 earlier in the month showed CEO Greg Beard buying $1 million worth of SDIG stock. That purchase was also part of the private placement.
TeraWulf Inc. (NASDAQ: WULF)
TeraWulf is a Bitcoin mining facility operator focused on low-carbon energy production. Thanks to a rebound in Bitcoin prices, WULF stock has benefited. In addition, TeraWulf announced last week that it would participate in a series of investor events this week and into May. Coupled with underlying industry momentum, it seems to be a focus for traders in the stock market this week.
On top of everything else, TeraWulf reported the full deployment of 50 MW at its Nautilus Bitcoin mining facility ahead of schedule.
“Our team has been working swiftly and diligently to achieve our stated goal of reaching 5.5 EH/s of operational mining capacity in Q2 2023,” said Paul Prager, Chairman and CEO of TeraWulf. “Deploying 50 MW of mining capacity at the Nautilus facility is an important milestone for the Company. Not only does it represent the first nuclear-powered Bitcoin mining facility in the U.S., but TeraWulf now has the opportunity to realize the economic advantage of 50 MW of zero-carbon mining at what is arguably the lowest contracted power cost in the sector – just $0.02 /kWh for a term of five years.”
