Penny Stocks to Watch With Ties to Crypto, Bitcoin (BTC), and Blockchain
With crypto and penny stocks back in focus, which companies are investors watching? Well, first we have to consider the different areas of blockchain, crypto, and penny stocks, to decide where you may want to invest.
The most prominent crypto penny stocks are the ones that mine cryptocurrency. These are few and far between, however, there are a select group of penny stocks to watch that engage in crypto mining. Next, we have the penny stocks that work with blockchain technology or are producing it. These could be tech penny stocks, software companies, or a combination of both.
Additionally, these companies could also be producing technology used in cryptocurrency mining. This includes machines used for mining Bitcoin, DogeCoin, Ethereum, and any others.
Lastly, we have the ancillary crypto penny stocks. This could be companies that have crypto holdings, ones that offer NFTs, or companies that are working to utilize blockchain technology in their practice. The level of involvement that a penny stock has in the cryptocurrency industry, should illustrate how large its correlation is to the frequent moves of crypto.
So the more involved a company is, the more likely it is to swing from crypto price swings. And, the less involved, the less likely it is to do so. In 2021, there is a whole list of penny stocks that work with cryptocurrency or blockchain-related tech. And knowing how and where to find them will be your greatest asset. Considering this, are these the best cryptocurrency penny stocks to buy now?
3 Penny Stocks With Relations to Crypto, Bitcoin, and Blockchain
1. Sos Ltd. (NYSE: SOS)
Sos Ltd. is a widely known penny stock for its role in the crypto industry. It is arguably one of the most pure-play crypto stocks out there. While it began as a provider of emergency services products, in January of this year, it transitioned into a crypto-mining company. Although this is an odd shift from its original business model, Sos has consistently changed its business into whatever is trending at the moment.
Recently, it ordered thousands of mining rigs for both Bitcoin and Ethereum mining. And again last month, it stated it would be purchasing another 575 mining rigs for Ethereum. This is a big deal, and given the massive shortage of circuit boards, this is also a smart move for the company.
Many investors view this as a strategic diversification of its assets. And, if all that isn’t enough, investors also consider it to be an ESG (environmental, social, and government) penny stock. This comes on the back of its recent contract with a large Chinese hydropower company.
Because crypto mining is so energy-intensive, many believe that there is a lot to be done about making it an environmentally friendly process. This includes the likes of famed Doge Father, Elon Musk, and other major industry executives. And while this move is a small one for Sos Ltd., it does show that the company is committed to the future and a sustainable one at that. Considering all of this, will SOS stock make it onto your list of penny stocks to watch?
2. Uxin Ltd. (NASDAQ: UXIN)
Uxin Ltd. is a penny stock that we’ve covered numerous times in the past few months alone. Up around 8% in morning trading, shares of UXIN stock are once again seeing heightened investor interest.
While it isn’t necessarily a crypto or blockchain company, it does act in the fintech market, which has been changed rapidly by the entrance of blockchain technology. In the past year, fintech and blockchain have gone hand in hand, and therefore, UXIN could be a candidate in this market.
Uxin operates as a nationwide online used car dealer in China. It offers everything from car purchasing to value-added products and after-sales services. In addition, it carries out the logistics of delivering vehicles across its nationwide logistics system.
In its unaudited third-quarter financial results for 2021, Uxin reported revenue of $49.5 million, alongside a non-GAAP adjusted loss of $24.9 million. But, the company also transitioned its business model into an inventory-owning one, meaning that it may not see the benefits of this until at least its next financial report.
“We are pleased to report that we have completed our strategic transformation into an inventory owning model in the quarter ended December 31st, 2020. This successful transition reflects our commitment and ongoing efforts to better serve our customers with our online products and services.”
Mr. Kun Dai, Founder, and CEO of Uxin
Uxin has continued to show bullish momentum in the past few months. And with a major shortage of microprocessors, used cars are selling at a premium right now. Considering this, is UXIN stock worth watching?
3. ZW Data Action Technologies Inc. (NASDAQ: CNET)
ZW Data Action Technologies is an internet advertising and marketing company. It provides everything from data analytics to blockchain services for its variety of enterprise clients.
Today, shares of CNET shot up by around 7% in early morning trading. This is a reaction to the company stating that its subsidiary, ChinaNet Online Technology Co. Ltd., has become an authorized advertising service provider for KOLs and Ecommerce by the tech major, Tencent Holdings.
“We believe this collaboration will enhance our spectrum of resources for advertising and marketing to the next level, especially for our future cross-border KOLs and e-commerce business. In addition, we intend to add blockchain to media resources to enhance the accuracy and transparency of the efficiency and effectiveness of the digital marketing.”
CEO of ZW Data Action, Handong Cheng
Because ZW Data is using blockchain in a different and groundbreaking way, many investors view it as an interesting penny stock to watch. Additionally, the world of e-commerce and advertising has grown substantially as a result of the pandemic, and it looks like it could continue to grow in the coming future. With all of this in mind, CNET stock could be an interesting addition to your penny stocks watchlist.
Crypto Penny Stocks Continue to See Big Investor Interest
With so much going on in the field of crypto and blockchain, there are plenty of penny stocks that stand to benefit. Because of this, investors should use research and a commitment to finding the most recent news to make a better decision about which blockchain penny stocks could be worth buying.
Keep in mind that this industry moves fast, and prices are subject to change very quickly. With all of this in mind, which crypto penny stocks are you watching right now?