CLSK - 3 Hot Penny Stocks to Watch After Milestone Crypto News
2023-08-29 12:48:19 ET
Investors are watching plenty of headlines in the stock market today. Whether you’re trading penny stocks or higher-priced shares, it’s tough to not follow news that is dramatically moving markets. In particular, the latest round of economic data has swayed traders into hoping for a soft-ish landing. But there is much more than the stock market news surrounding the economy. Crypto news is also fueling market sentiment and speculation.
Crypto News Today
In the latest crypto news, Grayscale Bitcoin Trust ( OTCMKTS: GBTC ) has achieved a significant win against the United States Securities and Exchange Commission (SEC). The victory pertains to Grayscale’s efforts to transform its over-the-counter GBTC application into a listed Bitcoin ETF.
Based on court documents dated August 29, U.S. Court of Appeals Circuit Judge Neomi Rao directed that Grayscale’s request for review be approved and the SEC’s decision to reject the GBTC listing application be overturned.
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The judge previously mentioned that the SEC failed to provide a clear reason for its decision against Grayscale. However, this order doesn’t necessarily ensure the future listing of a Grayscale spot Bitcoin ETF. Michael Sonnenshein, Grayscale’s CEO, expressed gratitude for the support and mentioned that their legal team is currently examining the court’s decision.
Not The First Crypto News Headline To Turn Heads
In another round of crypto news earlier in August, Cathie Wood’s ARK Invest ( NYSE: ARKK ) decided to enter the race for an Ethereum Futures ETF. This move comes after the US Securities and Exchange Commission (SEC) decided to delay its verdict on the ARK 21Shares Spot Bitcoin ETF application. ARK Invest, in collaboration with 21 Shares, has now applied for an Ethereum futures ETF, marking a strategic approach for both firms.
The filing with the SEC on August 24 indicates that ARK Invest and 21 Shares will serve as sub-adviser and sub-sub-adviser, respectively, for two distinct funds that aim to invest in Ethereum futures contracts. These funds are the ARK 21Shares Active Ethereum Futures ETF and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF.
If approved, the ARK 21Shares Active Ethereum Futures ETF, with the ticker ARKZ, will invest in a collection of ether futures contracts, including those traded on regulated commodity exchanges like the Chicago Mercantile Exchange (CME). The fund will focus on futures contracts and will not invest directly in Ether.
The remaining assets of the fund will be allocated to short-term cash instruments to enhance liquidity and hedge against its investments in Ether futures. Additionally, ARK Invest and 21 Shares are also planning to introduce the ARK 21Shares Active Bitcoin Ethereum Strategy ETF, which will invest in both Bitcoin and Ethereum futures contracts. This strategy mirrors Valkyrie’s attempt to include ETH futures contracts in its Valkyrie Bitcoin Strategy ETF.
Crypto Stocks To Watch
- Hut 8 Mining Corp. ( NASDAQ: HUT )
- Cleanspark Inc. ( NASDAQ: CLSK )
- TeraWulf Inc. ( NASDAQ: WULF )
Hut 8 Mining Corp. (HUT)
Bitcoin and Blockchain penny stocks are climbing higher in the stock market today. Hut 8 is one of the companies benefiting. It is one of the largest digital asset mining companies and high-performance computing infrastructure companies in North America.
While shares have slipped from their previous 2023 highs, the latest bout of positive sentiment has helped breathe some new life back into HUT stock this week. Shares have bounced back nearly 20% over the last 24 hours.
Meanwhile, the company has events of its own to keep track of. The most recent of these is the proposed collaboration with U.S. Data Mining Group dba US Bitcoin Corp. This is expected to be an all-stock merger.
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According to Hut 8, “The Transaction is expected to establish New Hut as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry-leading environmental, social, and governance (ESG) practices.”
This week an independent proxy advisory firm is supportive of the deal and is pushing for shareholders to vote in favor of the transaction. “We continue to make progress toward closing the Transaction with USBTC and are very pleased that ISS has recommended that Hut 8 shareholders vote in favour of all resolutions to establish New Hut,” said Jaime Leverton, CEO of Hut 8.
Cleanspark Inc. (CLSK)
CleanSpark is another one of the Bitcoin stocks to watch right now. Like Hut, it also mines Bitcoin. The company is coming off of a stronger-than-expected quarter in terms of EPS. Even though it missed sales expectations, the margin was slim. Cleanspark reported $45.52 million compared to the $45.71 million anticipated. Cleanspark also achieved record revenue in this figure and current cash and bitcoin holdings of $125 million.
“We have fully funded our growth to 16 EH/s,” said Zach Bradford, CEO.”We have fully funded our growth to 16 EH/s, including miners, facilities, and other infrastructure, on top of a record-breaking quarter in terms of growth and revenue,” said Zach Bradford, CEO. “We now operate over 9 EH/s of efficient computing power at some of the industry’s best all-in electric rates. That growth is translating to record-setting revenue. We have over $90 million in cash and almost 1,200 bitcoins on our balance sheet as of today. We continue to build on our longstanding track record of executing on our commitments, and I’m proud to say that this is a truly best-in-class team.”
HC Wainwright, Chardan, and Cantor Fitzgerald all recently either adjusted or reiterated their CLSK stock forecasts. HC boosted its $12 target to $14 and has a Buy rating. Chardan upped its $10 target to $11, paired with a Buy rating. Cantor reiterated its Overweight rating and maintains a $10 target.
TeraWulf Inc. (WULF)
Thanks to heightened interest in cryptocurrency and rising Bitcoin prices, sector stocks have gotten a boost. Thanks to Terawulf’s involvement within the space, that sentiment has carried over to WULF stock.
It is a Bitcoin mining facility operator leveraging low-carbon energy production platforms. It aims to capitalize on the new “green” mining opportunity created thanks to a growing interest in environmentally friendly digital mining operations.
In its July production and operations update, TeraWulf reported that it self-mined 330 BTC for a total of 1,771 BTC mined year-to-date. The company also reported that its power cost averaged $12 per BTC produced.
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Paul Prager, Chief Executive Officer of TeraWulf, also said in its quarterly update, “As we move into the third quarter, we are actively expanding our Lake Mariner facility by 60% with the addition of 43 MW of infrastructure and 18,500 of the latest generation S19j XPs. This near-term expansion will further establish TeraWulf as one of the most efficient mining fleets in the sector with a realized average cost of power of 3.5 cents per kilowatt hour and average availability in excess of 98%.”
Thanks to the latest news, regarding GBTC stock and pending ETF submissions, WULF stock is another name topping the list of penny stocks to watch today.