3 Top Penny Stocks For Your Watchlist with Bitcoin Skyrocketing
With both penny stocks and blue chips climbing on Thursday, investors witnessed Bitcoin’s price shoot up past $61,000. With an intraday gain of roughly 3%, BTC price is on many investors’ minds right now. And as a result, there are plenty of penny stocks to watch that could benefit from the rising price of Bitcoin. In relation to cryptocurrency, penny stocks such as those in the mining, blockchain, or tech industry could be worth watching.
And depending on your tolerance for risk, certain industries could be better suited to your portfolio. For example, companies that mine cryptocurrency, are usually the most volatile as they have the largest correlation to the crypto industry. On the other hand, companies working in blockchain technology, can be less volatile at times. But, it truly depends on the individual business and not solely the industry that it works in.
For this reason, it is crucial to have a thorough understanding of exactly what the company does and its involvement in crypto. In addition, investors should look into any company-wide or industry-wide announcements to see if there is any speculative momentum to take advantage of. So, with Bitcoin rising above $61,000, here are three top penny stocks to watch.
3 Penny Stocks to Watch As BTC Climbs
NextPlay Technologies Inc. (NASDAQ: NXTP)
Up by over 13% on October 15th, shares of NXTP stock have climbed by more than 49% and 78% in the past five days and one month period. These are substantial gains, and something that investors should take note of. If you’re not familiar, NextPlay is a tech company that offers games, in-game advertising, crypto-banking, and more.
Only recently, the company announced the appointment of Jorge E. Miro Hernandez as President and COO of its international banking unit, NextBank International. Bill Kerby, Co-CEO of the company states that “as an industry leader in fintech, banking operations and compliance, we see Jorge making strong contributions to the growth and development of our fintech division as head of our new bank.”
NextBank is working to serve both U.S. and international clients and provides cutting-edge fintech solutions for its customers. While it’s difficult to pinpoint why shares are rising so much right now, not could be due to NXTP’s placement as a meme stock and its relation to crypto. For those unfamiliar, a meme stock is a stock that rises in value due to social sentiment. And because there is no clear reason for NXTPs gain, this seems like the next logical assumption. So, considering all of this, does NXTP stock deserve a spot on your watchlist?
Bitfarms Ltd. (NASDAQ: BITF)
If you’re looking for a more pure-play blockchain penny stock, BITF stock could be worth keeping an eye on. Up by over 8% today, BITF is technically no longer a penny stock. However, it was only a few days ago. Bitfarms is a Bitcoin mining company that operates vertically integrated mining facilities. This includes doing its own electrical engineering, repair, and installation.
And, the company states that it is working to make its five industrial facilities in Quebec completely renewable. Only a week ago, the company stated that it signed an engineering, procurement, and construction contract for a new facility in Argentina. This facility should add an additional 210 megawatts to its fleet.
“Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint. Combined with the expansion in Quebec, Canada, and our planned build-out in Paraguay, we are positioned to achieve our corporate target of 8 exahash per second by year-end 2022.”
The CEO of Bitfarms, Emiliano Grodzki
This is big news for the company, and especially so considering the rise of Bitcoin right now. Although BITF stock is highly correlated to the price of BTC, it could still be worth considering for investors of all types. With that in mind, will it be on your penny stocks watchlist moving forward?
LM Funding America Inc. (NASDAQ: LMFA)
LMFA stock is one of the biggest gainers of the day, pushing up by over 32%. What’s interesting is that there is no clear reason why LMFA stock is moving today. With abnormally high volume, this could be another example of a meme stock. But, to understand this further, we have to take a look at what the company does.
LM Funding is a tech-based finance company that engages in a variety of business operations. Recently, the company has been working expand its crypto operations, with a total of 5,000 Bitcoin mining machines. The company states that it should have 504 petahash of mining capacity by next year. While it doesn’t have all 5,000 machines yet, it expects them to be fully operational by Q3 2022 and that these machines could generate 1,200 Bitcoins per year which is quite substantial.
“In September, we began to purchase Bitcoin mining machines as a cost-effective way to purchase Bitcoin assets at a risk-adjusted exposure to the ecosystem while generating positive operating income.
Our initial plans have expanded with the purchase of an additional 4,000 miners at favorable prices. We plan to run all of our mining machines with low carbon energy housed in custom-built containers purchased from Bit5ive.”
Bruce M. Rodgers, the Chairman, and CEO of LM Funding
Because energy is a major environmental and cost concern of mining Bitcoin, these custom-build containers should help to offset this. So, considering all of this, do you think that LMFA stock is worth adding to your list of penny stocks to watch?
Which Penny Stocks Are You Watching With Bitcoin Skyrocketing?
When the price of Bitcoin goes up, we often see sympathetic movement with corresponding penny stocks and blue chips. For this reason, it’s always important to pay attention to the price of BTC as well as any news relating to crypto.
And in 2021, there is plenty of news to keep track of that may help you to make money with penny stocks. Considering this, which penny stocks are you watching as Bitcoin continues to move up?
The post Top Penny Stocks to Watch As BTC Passes $61,000 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.