Bitcoin Is Flying High, Stoking Interest In Cheap Penny Stocks
Cryptocurrency & blockchain-related penny stocks are on the radar today. If you were paying attention to the crypto market over the weekend, you know why. Crypto coins and tokens, including Ethereum, Bitcoin, Dogecoin, and, yes, Shiba Inu, broke higher. Optimism surrounding the future of DeFi has taken hold. Thanks to inflationary fears promoting a rebirth of the “safe haven” trade, digital gold has become a preferred hedge.
This, of course, refers to Bitcoin in the sense of digital gold. Meanwhile, digital oil via Ethereum has also gotten a nice boost. Following an early morning dip, ETH prices jumped back above $3,600 in mid-day trading on October 11. As far as the price of Bitcoin is concerned, the “godfather” of digital currency broke above $58,000 for the first time since May.
With this boost in trading momentum, sympathy sentiment has begun creeping its way across the stock market. Companies with exposure to technology, energy storage, and even crypto mining stocks are gaining ground.
Today we’re looking at some of the lowest-priced names with exposure to the crypto/blockchain arena. These are all penny stocks under $1 to watch as the crypto market gains strength.
Penny Stocks To Watch
Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
The digitization of everything from money to entertainment has rapidly evolved over the last year. Thanks, in part to the pandemic, plenty of people are getting used to doing things virtually, which has helped several industries. Cryptocurrency, of course, is one, but entertainment & sports are another. Specifically, the rise of esports has become more apparent thanks to last year’s stay-at-home orders. Alpha Esports Tech is one of the companies that has begun gaining steam recently.
Ever since going public earlier this year, the focus for Alpha has been on expanding its global footprint to take advantage of the growing body of potential gamers and entertainment consumers. Its GamerzArena platform is the core of this model. This unique ecosystem that’s being built includes the ability for novice and professional gamers to try their hand at esports. It also fosters gamer development, offering players and professional scouts to interact with “tomorrow’s pro” athletes.
According to the company, the product boasts over 100,000 active users and a rapidly evolving ecosystem. Adding to this have been significant partnerships and operating agreements with technology providers and other esports companies. Most recently, Alpha inked a deal with Nasdaq-listed Esports Entertainment Group (NASDAQ:GMBL). This will see the two partner and develop a new computer vision tech system.
On top of this, Alpha’s leadership and advisory board comprise members with direct industry experience. It includes names from leading companies, such as Activision and Atari. Alpha’s team also has prior experience at companies like Red Bull, Reel One Entertainment, The Golden State Warriors, Mount Sinai, and Victory Square Technologies, to name a few.
Where Does Cryptocurrency Come Into The Picture With Alpha?
Alpha is taking on an initiative to monetize its esports platform through tokenization. The company’s Bitcoin pegged Alpha Coin was created to allow 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 crypto stocks to watch right now.
Molecular Data Inc. (NASDAQ:MKD)
Another one of the names to know on this list of penny stocks is Molecular Data. Similar to Alpha, Molecular has a unique relationship to the digital arena. The company specializes in supply chain technology. Specific to the Chinese chemical industry, its technology platform connects consumers, retailers, and wholesalers across different areas of China’s chemical supply chain.
Molecular Data brings e-commerce solutions, warehousing, logistics, and software products to streamline the chemical industry’s production flow.
Where Does Cryptocurrency Come Into Play With Molecular Data?
Earlier this year, the company partnered with Wanxiang Blockchain. The aim is to digitize the chemical industry entirely from a supply chain perspective. Molecular and Wanxiang plan on building a blockchain platform for fixing supply chain bottlenecks and enhancing eCommerce. The company also signed on with an investment firm to build blockchain data centers. According to a company update, the partnership will focus on bottlenecks in the Chemical space and create commercial-scale Blockchain data centers in America.
Greenpro Capital Corp. (NASDAQ:GRNQ)
When it comes to Bitcoin, Ethereum, blockchain technology, and digital assets, Greenpro Capital has recently found a home in the crypto sphere. In its case, the company is working on crypto lending and non-fungible token (NFT) investing. It also has built a business acting as an incubator for internet connectivity companies like Agkasa-X.
There’s no question as to how crypto fits into Greenpro’s model. Most of its recent updates have focused on its expanded footprint. For example, Greenpro invested in security token offering (STO) projects in the Philippines last month.
“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,” explained CK Lee, Greenpro CEO in a September release.
With a clear focus on new cryptocurrency-supported projects, upticks in things like Bitcoin and Ethereum have acted as a catalyst for GRNQ stock this year. Heading into the week, it looks like things have followed this trend so far.
DMG Blockchain (OTC:DMGGF)(TSX:DMGI)
One of the exciting things about looking at some smaller companies is seeing them doing deals with larger companies. We discussed Alpha Esports’ recent project with Nasdaq’listed Esports Entertainment Group. Similarly, DMG Blockchain has been in the spotlight thanks to its own deal.
DMG focuses on environmentally friendly end-to-end digital solutions for monetizing the blockchain ecosystem. With everything from data-center operations to forensics, analytics, and enterprise blockchain solutions, DMG is getting itself into all major areas of this budding industry. As one example, DMG made a sizeable investment into Bosonic’s crypto trading platform targeting institutional cryptocurrency transactions earlier this year. On the other side, it also hosts bitcoin miners that use DMG’s clean energy platform and the company’s DMG Blockseer Mine Management software.
Where does the “big deal” come into the picture? Last month, DMG announced joining Marathon Digital Holdings’ (NASDAQ:MARA) Bitcoin mining pool, MaraPool. Marathon is one of the largest Bitcoin self-mining companies in North America. DMG became the first North American Bitcoin miner (excluding Marathon) to join MaraPool.
Are Bitcoin Stocks Worth The Risk?
Just like all penny stocks and investments, in general, there’s risk involved. Something a bit more of an added risk is the underlying volatility of the digital currencies themselves. One negative headline like we saw from China earlier this summer or one bullish bet from tech billionaires can send prices surging in either direction. So if you’re looking for names to add to your Bitcoin stock watch list, keep that in mind.
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