What’s happening in the stock market today? While we’ll discuss a few penny stocks to watch, the main focus is on renewed banking crisis fears. Earlier this week, JPMorgan announced taking over the 3rd failed US bank, First Republic (FRC Stock Report).
While markets seemed to shrug off those fears by the end of the Monday session, they reemerged as Tuesday’s premarket session began. Shares of regional banks like Western Alliance Bank stock (WAL Stock Report) and Zion Bancorporation (NASDAQ: ZION) plummeted. Concerns of further contagion in regional bank stocks ahead of the May Fed meeting & rate hike decision dominated sentiment.
But that didn’t mean the stock market was down today and took all stocks with it. In fact, there were a handful of niche names trading higher. As you might guess, they were related to the “anti-bank trade” or the “defi” stock trend in companies with exposure to things like Bitcoin.
Shortly following the morning’s major sell-off, Bitcoin prices and the price of Ethereum began trading higher. As of this article, BTC prices are back above $28,700, with Ethereum closely behind, up roughly 2.7% from the open.
Cryptocurrency stocks, including many tech penny stocks, caught a nice surge of sympathy sentiment in the stock market today. But it wasn’t only Bitcoin stocks making moves higher. Today we’ll look at a few stocks that some traders are watching closely as the banking crisis contagion fear prevails on Tuesday.
Penny Stocks To Watch
CleanSpark Inc. (CLSK)
Cryptocurrency-related stocks are heading higher thanks to the financial market’s bearish action. CleanSpark shares are following suit after recovering from a significant sell-off at the start of the week. The company mines Bitcoin and, in its most recent mining update, reported that it minded 598 BTC in March. The company also remains on track to build out its Washington build-out.
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Last month, CleanSpark announced plans to double its mining capacity. It expects to purchase 45,000 new Antminer S19 XP machines and will add to the 20,000 purchased in February. One thing keeping the focus of those speculating on the prospects of CleanSpark is its upcoming earnings report. It will be released on May 10th following the market’s close, beginning at 4:30 pm ET.
The critical thing to note with any Bitcoin stocks today is that the move is likely more sentiment based than anything else. Those hedging their bets against a real financial crisis may look at other assets less tied to centralized financial institutions. With bullish sentiment can come higher levels of volatility in the short term. But like we’ve seen many times in the past with cryptocurrency-related companies, a shift in opinion can also mean volatile trends to the downside quickly.
Bit Digital Inc. (BTBT)
Shares of Bit Digital are echoing a similar trend as CleanSpark. The company also mines digital assets and recently published its Fiscal 2022 results. In a late-April update, the company reported total revenue of $32.3 million in 2022 while earning 1,247.5 BTC during the year.
In total, Bit Digital generated 294.3 ETH in 2022 but also suspended its ETH mining program thanks to the ETH blockchain switch. Management also mentioned that it “finished 2022 with $34.0 million of cash and restricted cash and $29.2 million worth of digital assets as of December 31, 2022. We remain debt-free and have no significant capex obligations, which provides us with appreciable flexibility in the current environment. Maintaining a best-in-class balance sheet remains one of our top priorities in 2023. As the year progresses, we aim to deploy capital opportunistically and strategically across different avenues that we believe will enhance our long-term earnings power.”
Meanwhile, in March 2023, it continued to increase its mining capabilities. Bit Digital earned 119.4 bitcoins, a 10% increase compared to the prior month. The increase in production was primarily driven by additional days during the month, according to the company.
IN8bio Inc. (INAB)
While it isn’t mining digital assets, INAB stock is heading in the same direction as Bitcoin today. Last month, the company turned heads after presenting positive data on its INB-100 in leukemia patients. The data was presented at the European Society for Blood and Marrow Transplantation meeting. All evaluable patients treated with INB-100 were alive and progression-free with “durable complete remission” as of April 21.
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“We are thrilled to report that 100% of evaluable dosed patients remain in morphological CR with the first three high-risk AML patients with complex cytogenetics now alive and relapse-free, with one patient surviving for as long as 3 years,” said Dr. Trishna Goswami, IN8bio’s Chief Medical Officer. Further, “INB-100 has demonstrated, for the first time, in vivo expansion and persistence of an allogeneic, or donor-derived cellular therapy at the higher levels associated with greater survival outcomes.”
The company will also present Phase 1 data from its INB-200 trial in glioblastoma patients next month at the American Society of Clinical Oncology. As May progresses, this could be something that traders are focusing on. CEO Wiliam Ho explained, “The current median progression-free survival with the standard of care for GBM is 6-7 months, and overall survival is only 14-16 months. We believe that our unique approach to solid tumor cancers targeting the DNA damage response with our genetically engineered gamma-delta T cells may eliminate more cancer cells and potentially prolong the time to relapse or death.”
List Of Penny Stocks
- CleanSpark Inc. (NASDAQ: CLSK)
- Bit Digital Inc. (NASDAQ: BTBT)
- IN8bio Inc. (NASDAQ: INAB)