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Bitcoin’s Record Run Is Igniting These Crypto Penny Stocks

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Written by Timothy Sykes
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Bitcoin has run past the $100,000 mark, and this all-time high is good news for crypto penny stocks. These low-priced stocks, tied to Bitcoin mining, blockchain innovation, and crypto investment, are riding the momentum and offering short-term trading opportunities for savvy traders.

From AI-driven blockchain platforms to next-generation Bitcoin mining hardware, these penny stocks are primed for action. The same warnings apply: these plays are highly speculative, and their volatility demands precise timing and disciplined exits.

Let’s look at three stocks whose returns dwarf Bitcoin’s.

Canaan Inc. (NASDAQ: CAN): Powering Bitcoin Mining With High-Performance Hardware

Canaan designs cutting-edge application-specific integrated circuit (ASIC) machines, the backbone of Bitcoin mining operations. These devices perform trillions of hash calculations per second, offering miners efficiency and profitability unmatched by standard GPUs. As Bitcoin’s price soars, so does demand for Canaan’s machines.

Key Catalysts:

  • Rising sales of Avalon ASICs, driven by Bitcoin’s breakout above $100,000.
  • Affordable and energy-efficient devices that appeal to miners upgrading their operations.
  • Expanding market share as more miners invest in next-generation hardware.

Trading Strategy:
Canaan’s stock, currently trading near $2.50, is highly sensitive to Bitcoin’s price movements. Watch for support around $2.00 and a potential breakout if Bitcoin continues its rally. Focus on short-term trades with tight stop-losses, as speculative behavior can lead to sharp reversals.

Hut 8 Corp. (NASDAQ: HUT): Sustainable Mining Meets Yield Farming

Hut 8 is a Canadian Bitcoin mining leader that stands out for its sustainable operations and innovative financial strategies. The company uses renewable energy sources like wind and solar to power its mining, addressing environmental concerns while maintaining profitability. Instead of selling mined Bitcoin, Hut 8 lends it out to earn yield, compounding shareholder returns.

Key Catalysts:

  • Bitcoin’s rise directly boosts Hut 8’s earnings as the company holds significant reserves.
  • Yield farming adds a unique layer of profitability, leveraging market opportunities without selling Bitcoin.
  • A $500 million equity offering to fund expansion demonstrates confidence in future growth.

Trading Strategy:
HUT’s stock, trading around $27, is tightly correlated with Bitcoin. Look for support near $25, with potential resistance at $30. Use Bitcoin’s price action as a guide for entries and exits, focusing on short-term opportunities rather than long-term holds.

More Breaking News

BTC Digital Ltd. (NASDAQ: BTCT): Small-Cap Miner With Big Moves

BTC Digital has captured attention with its recent 316% single-session rally, fueled by Bitcoin’s upward momentum. With a market cap of just $68 million, BTCT is highly responsive to Bitcoin price changes, making it a prime candidate for speculative trading.

Key Catalysts:

  • Bitcoin’s 50% surge in the past month has renewed interest in crypto miners.
  • The company’s small size magnifies price sensitivity, creating large swings on relatively small volume.
  • Continued enthusiasm for Bitcoin could drive further gains if it sustains its breakout above $100,000.

Trading Strategy:
BTCT is trading near $12, with support at this level and potential for a breakout above $20. Focus on short-term trades, as the stock’s volatility can create both quick gains and sharp losses. Set tight stop-loss orders to manage risk effectively.

The Bottom Line

Crypto penny stocks are thriving as Bitcoin smashes records, but their volatility makes them risky. These stocks offer plenty of opportunities for disciplined traders who can act quickly and avoid emotional decisions.

Never chase spikes or hold onto these stocks too long. The smart move is to react to price action, follow clear trading setups, and protect your capital at all costs. Bitcoin’s rally won’t last forever, but while it does, crypto penny stocks like CAN, HUT, and BTCT remain worth watching.

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Stay ahead of the action by focusing on patterns, catalysts, and disciplined risk management. That’s how you trade the hottest sector without getting burned.

What’s your take on the crypto surge? Do you think we’re in a bubble or a bear market — let me know in the comments!

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”