Penny stocks looking to pounce on the cryptocurrency buzz are enjoying a renaissance triggered by Bitcoin’s new momentum.
For example, MGT Capital Investments Inc. — which trades for less than 10 cents per share — on Tuesday announced plans to resume Bitcoin mining operations, citing the cryptocurrency’s now 12-day rally to top $8,000. That pushed shares up as much as 15% on Tuesday, as traders funneled money back to the stock; market cap was about $16.2 million versus a 2017 peak of nearly $350 million.
It remains to be seen how many other penny stocks will incorporate “Bitcoin” into press releases. They may find it tempting as the biggest cryptocurrency has gained 60% in a more than two-week climb, compared to a bloody stretch for U.S. equity markets that wiped more than 3% from both the S&P 500 Index and the Dow Jones Industrial Average.
Other fan-favorite firms that are focused on cryptocurrencies are trading higher. Shares of Riot Blockchain Inc, Marathon Patent Group Inc., and Grayscale Bitcoin Trust BTC were all outperforming the market on Tuesday, pacing to extend comebacks of their own