3 Blockchain Penny Stocks For Your May Watchlist
As blockchain penny stocks are once again in focus, investors are working hard to make a May watchlist. When forming any penny stock watchlist, it’s imperative to consider a few factors. For one, what does the company do, and is that different than any other company? This can help to identify potential value in an industry, or value in comparison to other similar penny stocks.
Two, investors should consider the more speculative aspects of a company. For those who don’t know, speculation includes the outside factors that can impact a company in the short or medium term. This includes events such as news, press releases, balance sheet announcements, or any similar information regarding a company. Because penny stocks are under $5, they tend to be highly speculative. This is in comparison to blue chips or stocks that are above $5.
Because speculation is high, investors tend to use penny stocks as a more short-term financial instrument. This is because price swings are common, and values can fluctuate substantially on a daily or weekly basis. Lastly, investors need to understand the more fundamental aspects that can affect a stock price in the short or long term.
This includes the information outlined in a balance sheet or any corporate filings put out. While these events can be perceived as speculative, they can have a large impact on the future of a company, and on what it will do in the coming months or years.
Additionally, the world of blockchain penny stocks has become extremely popular in the past few months. While it started with DogeCoin, many investors have since discovered the entire blockchain ecosystem. And while you may think penny stocks and blockchain are very different from one another, they share several characteristics.
Because they are both cheap assets (except for Bitcoin and Ethereum), they can be comparable to some degree. Additionally, there are plenty of penny stocks working in the cryptocurrency and blockchain industry. So for these reasons, let’s take a closer look at three blockchain penny stocks for your May watchlist.
3 Blockchain Penny Stocks to Watch Right Now
- ZW Data Action Technologies Inc. (NASDAQ: CNET)
- HIVE Blockchain Technologies Ltd. (OTCMKTS: HVBTF)
- Sos Ltd. (NYSE: SOS)
ZW Data Action Technologies Inc (NASDAQ: CNET)
ZW Data Action Tech. (CNET) is an upstream, cloud-based business working on the integration of blockchain data and analysis. It does this to vastly improve the performance of the companies that it works with. It utilizes its assets to offer marketing, improved operations, and higher revenue for small and medium-sized businesses. Using its precision advertising, the company has been able to vastly grow its market over the past few years.
With more than 500 employees and serving more than 3,000 customers worldwide, its annual revenue exceeds a whopping $30 million. Its success with small and medium enterprises (SMEs) is due to its integration of sophisticated data-mining and analysis technologies from offline to online business operations.
This includes services like online marketing of SaaS service (CloudX) further integration. While this is a niche market, it has risen to popularity greatly in the past few months. Especially considering the rise in value of certain cryptocurrencies. Considering its almost $19 million registered direct offering, the company also looks like it is well capitalized to continue operations into the future. With all of this in mind, is CNET stock worth watching?
Hive Blockchain Technologies Ltd (OTCMKTS: HVBTF)
While it’s thought that all blockchain technology is virtual and cloud-based, Hive Blockchain runs the foundational infrastructure that blockchain is generated on. HVBTF operates one of the largest and most diversified cryptocurrency mining operations of any publicly-traded company. Because of this, many investors choose to include it on their watchlists. While it is subject to the high volatility of the cryptocurrency industry.
Hive Blockchain has made a public commitment to low-cost green/renewable energy. This is important because typically, mining cryptocurrency is an extremely energy-intensive process. Additionally, energy usage is the only continued cost that is associated with sizable mining operations. If it can successfully utilize low-cost renewables, it could be a game-changer for its balance sheet. Additionally, other companies could follow suit, and utilize similar technology moving forward.
In 2020 Hive acquired and established a cryptocurrency mining operation in Quebec, Canada. Moreover, at its Icelandic facility, it managed to decrease operating expenses by more than 50%. This is a substantial milestone and should not go unnoticed. With this massive rise in efficiency, it’s no surprise that its stock valuation has increased by over 760% in the last six months.
Olivier Roussy Newton, a strategic advisor of the company has been praised as the visionary who was the first to conceive of a publicly-traded cryptocurrency mining company. With increased public funding, HVBTF has increased its bitcoin mining capabilities by 150% in only a short period. Considering this information, Hive could be an interesting addition to your watchlist.
Sos Ltd. (NYSE: SOS)
SOS Ltd. is a penny stock that we’ve been covering for quite some time. It works in the blockchain industry, where it focuses on big data. This includes everything from data accumulation to cloud computing and more. While it began as an emergency-services product provider, the company has since evolved into much more. Albeit, it does still provide these products to the information services, auto, financial, and healthcare markets.
On April 20th, SOS made headlines after announcing a purchase agreement for 575 Ethereum mining rigs. These rigs should significantly improve its ETH hash rate as well as potentially increase its long-term revenue. What’s more, is that there is a worldwide shortage of mining-related equipment. So securing these rigs is a big deal for both the company and investors alike.
“We are optimistic about the future of cryptocurrencies and Ethereum in particular. This is part of our overall strategy to develop blockchain-based environments and services and which will be a core part of our growth in 2021 and beyond.”
CEO of SOS Ltd. , Mr. Yandai Wang
With all this new buzz about the increased mining potential of SOS, this is a penny stock to keep an eye on. As 2021 progresses, it seems that digital assets and penny stock companies like SOS are only increasing in what they can do. Whether or not SOS is worth watching is up to you.