If there was a week to talk about the importance of sympathy sentiment, this is the week. There have been countless breakouts from penny stocks simply because other companies are experiencing massive buying. We saw it with HKD stock, AMTD stock, LTRPB, APDN; the list is ever-growing. Today that trend continues with cryptocurrency-related penny stocks , thanks to Coinbase (NASDAQ: COIN ).
Why COIN Stock Is Moving Today
COIN stock is making a big move on Thursday after its latest headline paired the company with a major Wall Street fund. The cryptocurrency exchange is partnering with BlackRock to offer Bitcoin trading services to institutional clients. The world’s largest asset manager has essentially cosigned a bullish note on the future of digital assets. Those using BlackRock’s Aladdin platform and who have a Coinbase account have access to Crypto trading, prime brokerage, and custody services through Coinbase’s Prime institutional arm.
Brett Tejpaul, the head of Coinbase’s institutional arm explained, “Coinbase Prime integrates advanced agency trading, custody, prime financing, staking, and staking infrastructure, data, and reporting that supports the entire transaction lifecycle.”
With this news and epic rally in COIN stock today, shares of cryptocurrency-related stocks have reacted in kind. Today we look at a handful of Bitcoin and blockchain penny stocks to watch after the latest COIN stock news headline sparked sympathy momentum in the market.
Penny Stocks To Watch
- Cryptyde Inc. (NASDAQ: TYDE )
- Bit Digital (NASDAQ: BTBT )
- ZW Data Technologies Inc. (NASDAQ: CNET ‘)
- Sphere 3D Corp. (NASDAQ: ANY )
Cryptyde Inc. (NASDAQ: TYDE)
Better known as the BBIG stock spin-off, for now, Cryptyde Inc. has begun carving out a name in the stock market today. Amid the latest volatility in the cryptocurrency market, it has become synonymous with wild market swings. Despite being down from its IPO highs, TYDE stock has offered day traders individual session opportunities to capitalize on the short-term movement.
In the stock market today, TYDE has come up on the list of penny stocks to watch , thanks to sympathy in the crypto market. The company offers Web3 services leveraging blockchain technologies at scale. Right now, the name of the game is hunting for partnerships. As CEO Brian McFadden explained in a July operational update, “…We are evaluating partnerships and business development opportunities that we believe should lead to acquisition candidates as part of our larger long-term growth strategy.”
Earlier this month, TYDE stock saw a pop thanks to a new partnership update. Argo Energy and Cryptyde announced an energy program development agreement that created a sustainable energy solution for offering Bitcoin mining services. Power consumption and its impact on the environment have been a sore spot for the industry. Many companies, including Cryptyde, have taken a proactive approach to mitigate this issue. According to management, the plan is to generate roughly 150 megawatts of power through the agreement.
Keep in mind that with all penny stocks on this list, the price of Bitcoin and other cryptocurrencies can significantly influence related stocks.
Bit Digital (NASDAQ: BTBT)
Like TYDE stock and most others on this list of penny stocks , keeping an eye on Bitcoin prices is helpful. More times than not, no matter how strong a company is, if it’s got to do with cryptocurrency, it’s usually influenced by crypto prices.
In Bit Digital’s case, the company has direct exposure via its crypto mining business. It continues signing partnerships and expanding its operation to grow its North American footprint. This week, in fact, Bit Digital signed an agreement for 5 megawatts of hosting capacity to power its miners at a Canadian facility. According to the company, the location already powers roughly 650 miners and is anticipated to handle 1,500 units over the next few months.
Bryan Bullett, Bit Digital’s CEO, explained in an August 3rd PR, “We are pleased to further diversify our hosting portfolio with this primarily hydro powered site. We continue to believe that a diversity of hosting sites mitigates risk and enhances operational efficiency. This new agreement not only advances our goal of becoming entirely carbon-free but does so at an attractive cost that is expected to help reduce our weighted average power cost.”
Trading volumes in BTBT stock have picked up since July 18th. Meanwhile, the choppy price action in Bitcoin seems to have kept it and other crypto stocks in a tighter consolidation channel.
ZW Data Technologies Inc. (NASDAQ: CNET)
Metaverse stocks? Down but not out. With innovation comes high volatility and higher risk. We’ve seen this first hand with things like metaverse & NFT technology companies in 2022. Just because they’ve faced some headwinds, that doesn’t mean all is lost, and ZW Data is an example of that.
For the last month, CNET stock has steadily climbed higher. One of the initial catalysts came with bullish social sentiment. The penny stock popped in early July and has continued higher since. ZW also partnered with Forbes Global Alliance to launch NFT products and build the Forbes China Group Digital Collection Platform. This has helped boost bullish sentiment during the last week of trading.
Other than that, ZW has been relatively quiet on the newswires and not many filings as of late. But with the uptick of interest in cryptocurrency and digital assets, CNET stock could be one to watch right now.
Sphere 3D Corp. (NASDAQ: ANY)
Another Bitcoin penny stock to watch is Sphere 3D. The company provided a Bitcoin production and mining update for June last month. The company is dedicated to becoming a carbon-neutral Bitcoin miner and building to an industrial scale.
Regarding production, Sphere produced 12.19 Bitcoin in June and grew its BTC holdings to a total of 49.23 coins. Management also explained, “The current political and economic environment is impacting every financial market, including cryptocurrency. In June, the price of Bitcoin fell to a low of about $17,500 according to the Coinbase Exchange, the lowest level since late 2020. Some analysts and pundits speculate that the recent price declines indicate that we are entering a crypto bear market, and some are predicting cryptocurrency prices could remain depressed for an extended period.”
Considering the update was on July 7th for June’s performance, the market could be speculating on the next performance updates from last month.
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