Crypto penny stocks are stocks of companies that mine, hold, or invest in bitcoin (BTC), crypto altcoins, or blockchain technology. These can include companies entering the metaverse and NFT space since both use blockchain technology.
Hot sector hype returned with weed stocks in 2018, and again in 2020 with mask and biotech stocks. Now crypto’s the new kid on the block.
But I don’t look for the best cryptocurrency to buy, or trade sketchy cryptocurrencies like Shiba Inu or SafeMoon. I focus on trading sympathy plays in crypto penny stocks. Here’s what I’m watching…
SBET is the ultimate reminder that in penny stocks, anything can happen.
The company announced a $425 million Ethereum treasury strategy in late May — a headline that sent crypto stocks flying. SBET didn’t just spike; it went full supernova, surging more than 1,700%* over a few wild days. One of the biggest runs of 2025 so far.
Crypto remains hot as Bitcoin hovers near all-time highs and Congress debates new regulation. Stocks like SBET can benefit from the hype — but only if the price action confirms. Never believe the news blindly — trade the chart, not the company.
Supernovas like SBET prove the power of volatility. Recognize when the hype is peaking and learn to lock in profits before the crowd turns.
Crypto Penny Stock #2: CleanSpark Inc. (NASDAQ: CLSK) — The 10,000 Bitcoin Holding Crypto Penny Stock
CleanSpark Inc., based in Nevada, operates Bitcoin mining data centers with a focus on using low-carbon energy. Recently, the company hit a major milestone, coming into possession of over 10,000 Bitcoin — a 236% year-over-year increase. For traders, that’s a sign this company knows how to capitalize on momentum in the Bitcoin market.
CleanSpark’s low-carbon mining narrative adds speculative appeal, but the real driver here is Bitcoin’s price movement. When Bitcoin rallies, CleanSpark often sees sharp upward spikes, making it a go-to stock for short-term traders. Keep an eye on news about mining efficiency and Bitcoin accumulation as potential catalysts.
Ride the momentum but avoid overcommitting. CleanSpark is tied to Bitcoin’s volatility, so trade it like a momentum stock—look for breakouts and volume spikes. Always trade with stops in place and focus on taking quick singles rather than hoping for home runs.
Crypto Penny Stock #3: Cantor Equity Partners (NASDAQ: CEP) — The Bitcoin Merger Supernova
CEP exploded 290%* after announcing a massive merger with a Bitcoin company. That move was no fluke — on April 30, it made new highs.
This is the exact kind of supernova setup we trade in my challenge: a speculative runner with real momentum, a major news catalyst, and plenty of volatility to play both sides.
If it pulls back hard, I’ll be looking for a morning panic dip buy. If it holds recent levels, it could still push even higher. Either way, there’s opportunity here for prepared traders.
What makes this different? Strive plans to offer tax-free Bitcoin-for-equity swaps under Section 351 of the IRS code — a move that could draw serious capital.
Post-merger, the combined company aims to accumulate Bitcoin as a core treasury asset, while using equity and debt tools to fund further crypto acquisitions. It’s ambitious, controversial, and exactly what Robinhood traders chase.
KIDZ soared 510%* after announcing a radical treasury shift — embracing Solana (SOL) as a core asset, launching validator nodes, and appointing a digital asset advisor.
This puts KIDZ among the first U.S. microcaps to adopt a crypto-native treasury model, mirroring moves from UPXI and Janover.
Solana’s resilience in the face of political turmoil is part of this play. If SOL pushes higher — or if KIDZ drops to a key technical level — we could see another sharp bounce.
Crypto Penny Stock #6: MARA Holdings, Inc. (NASDAQ: MARA) — The Bitcoin Mining Sector Leader — Now With AI!
MARA Holdings, formerly Marathon Digital, has expanded its focus beyond Bitcoin mining to include AI and high-performance computing infrastructure. This pivot may sound exciting, but it’s worth asking whether it’s just another buzzword strategy to attract traders. Still, MARA’s expansion of its Ohio operations by 372 megawatts shows it’s serious about scaling its mining capacity.
MARA’s growth plans include nearly 1.5 gigawatts of capacity and potential diversification into AI-related services. These moves have created speculative buzz, but the stock’s performance remains closely tied to Bitcoin’s price movements.
Trade the momentum but stay skeptical of the AI narrative until there’s proof it can deliver results. MARA is a volatile stock that reacts sharply to Bitcoin rallies. Use technical setups to guide your entries and exits, and always keep a close eye on Bitcoin prices.
Crypto Penny Stock #7: Riot Platforms, Inc. (NASDAQ: RIOT) — The Other Bitcoin Mining Sector Leader
Riot Platforms is one of the most recognizable names in Bitcoin mining, with operations focused on renewable energy integration. Its stock is a favorite among traders because of its frequent and sharp price swings, often driven by Bitcoin’s performance. When Bitcoin spikes, RIOT tends to follow suit.
Riot’s focus on sustainability and operational efficiency gives it a speculative edge in the evolving crypto market. Recent expansions in renewable energy initiatives have added fuel to the stock’s momentum during Bitcoin bull runs.
Use Riot Platforms as a vehicle for short-term trades during Bitcoin rallies. The stock’s high volatility makes it ideal for momentum strategies, but it’s not a buy-and-hold play. Stick to your trading framework, cut losses quickly, and aim for consistent gains.
* Past performance doesn’t indicate future results.
What Are Crypto Penny Stocks?
Crypto penny stocks are shares of companies trading at low prices, typically under $5, that operate in or are heavily tied to the cryptocurrency sector. These businesses might focus on blockchain applications, digital asset management, crypto mining, or decentralized finance (DeFi) solutions. Some crypto penny stocks are startups with high growth potential, while others are struggling operations trying to pivot into the crypto space to boost investor interest.
From my experience teaching traders, penny stocks — especially those linked to hot sectors like cryptocurrency — can offer fast moves but come with serious risk. These companies often lack stable earnings, face regulatory uncertainty, and depend heavily on market sentiment. Smart traders treat crypto penny stocks like any other speculative investment: by using strict strategies for position sizing, volatility management, and focusing on confirmed momentum rather than hype.
For traders willing to study them carefully, crypto penny stocks can offer outsized opportunities, but the key is recognizing the difference between real potential and marketing noise. Always anchor your decisions to earnings, applications of blockchain technology, and broader market trends — not just the rise and fall of Bitcoin or Ethereum prices.
Crypto Stocks Surge Under Trump’s Pro-Crypto Agenda
With Donald Trump sworn in as the 47th President of the United States, the cryptocurrency market is riding an unprecedented wave of enthusiasm. Bitcoin (BTC) smashed through a new all-time high on a day when traditional markets were closed for Martin Luther King Jr. Day—coincidentally, the same day as Trump’s inauguration. Traders and crypto enthusiasts alike are paying attention to Trump’s rhetoric about positioning the U.S. as a global leader in the crypto space.
The incoming administration has pledged sweeping changes to normalize and legitimize digital currencies. These include the creation of a federal Bitcoin reserve, streamlined regulations to attract institutional investment, and policies aimed at promoting widespread adoption of cryptocurrencies. The buzz surrounding Trump’s pro-crypto stance has ignited momentum across the board, with Bitcoin-related stocks, blockchain companies, and digital assets benefiting from the market’s optimism.
The launch of Trump’s digital tokens—Crypto Emperor Trump ($TRUMP) and Official Melania Meme ($MELANIA)—is another part of this hype sandwich. These memecoins, created by Trump-backed entities, skyrocketed to multi-billion-dollar market caps, signaling strong demand from retail traders eager to drink the Kool-Aid.
Key Catalysts for Crypto Stocks in 2025
Bitcoin’s Record Highs: Bitcoin’s surge past $109,000 has set the tone for an explosive crypto market under Trump.
Trump’s Bitcoin Reserve Plan: Modeled after gold reserves, this plan could further legitimize Bitcoin as a major asset class and attract institutional investors.
Memecoin Frenzy: The meteoric rise of $TRUMP and $MELANIA tokens is a reminder of how speculation can drive massive gains in the crypto market.
Crypto Stocks Rally: Companies like MicroStrategy (NASDAQ: MSTR), Coinbase (NASDAQ: COIN), and Robinhood (NASDAQ: HOOD) are already seeing increased attention, with pre-inauguration rallies highlighting the sector’s momentum.
For short-term traders, the volatility surrounding these developments creates plenty of opportunities to trade the spikes. But, as I always teach, don’t get caught up in the hype. The crypto market is as unpredictable as ever, and it’s critical to stick to your trading framework. Cut losses quickly, lock in your profits, and always remember that no stock—or coin—is “safe.”
The excitement around Trump’s pro-crypto stance might make for some great trades, but don’t forget the risks. The best way to deal with those? Cut your losses quickly.
My goal with every watchlist is to help you learn. Use my watchlists to study the patterns, catalysts, and price action. Then build a trading plan of your own.
Your job as a trader is to profit from volatility, do NOT fall in love with any trade or asset as a trade is not profitable until you lock in your profits & getting emotional can muddy the waters. Similarly, it's difficult to cut losses fast if you become too emotionally involved
Why Bitcoin’s Rally Matters for Crypto Penny Stocks
Bitcoin’s climb to nearly $100K is more than just a big round number—it’s a catalyst driving widespread interest in the cryptocurrency sector. As Bitcoin pushes higher, it often pulls smaller, related stocks along for the ride. Here’s why:
Market Sentiment: Bitcoin’s gains create excitement across the sector, encouraging speculative trading in crypto-linked stocks.
Sympathy Plays: Smaller stocks like BTCWF, BTCT, and BTCS often benefit as traders look for low-cost ways to participate in the broader rally.
Volatility Opportunities: High volatility in Bitcoin can translate to sharp, tradeable moves in crypto penny stocks
Tips for Trading Crypto Penny Stocks
Follow Bitcoin Closely: Crypto penny stocks often mirror Bitcoin’s price action. If Bitcoin breaks key resistance levels, related stocks could follow suit.
Avoid Chasing Spikes: Wait for consolidation or pullbacks before entering trades to avoid overpaying.
Take Quick Gains: Volatility works both ways—aim for 10-15% profits and follow your trading plan.
Cut Losses Quickly: If a trade isn’t working, GET OUT. Your number one job is to protect your account.
Crypto Penny Stocks: The Bottom Line
Crypto penny stocks tend to move together based on sector momentum.
Follow the latest developments in Bitcoin and crypto stocks to stay ahead of the curve. Don’t get fooled by all the hype. The Donald Trump-Bitcoin catalyst will fade at some point, and you don’t want to be the one left holding the bag.
And keep your goals reasonable. Swing for singles. Learn to be patient and wait for your best setups to come to you. That’s what I teach students in my Trading Challenge…
Ready to put in the work to become a self-sufficient trader? Apply today!
What do you think about these crypto penny stocks? Let me know in the comments below!
Everyone wants to know about the most successful penny stocks in history … They want to believe in the dream of getting filthy rich on cheap stocks.
They also want to buy big houses and expensive vehicles without doing all the hard work.
Crypto is an interesting market… would you compare OTC stocks to IPO’S? anyway, great post and thank you I have learned to time my entry and take singles..not home runs.
Timothy Sykes●Nov. 01, 2021 at 6:00 am
Companies that do proper IPOs usually have several VC rounds before listing. OTCs are a different beast. Get in my Trading Challenge for Q&A!
Ivy Phillips●Sep. 17, 2021 at 9:42 am
Tim the Would love to trade I just don’t have any money
Timothy Sykes●Sep. 21, 2021 at 2:30 am
Most of my top students started small. But it does require some money to start.
Bronson●Sep. 10, 2021 at 6:25 pm
U are a true good teacher i think u deserve to be a millionaire i have been appreciated all ur free watchlist and free e book Thank u so much and Have a great day and always stay safe while traveling i am an old man who hits a like button for ur videos always all the way from Hawaii
Matt●Sep. 03, 2021 at 2:56 pm
I like $ISWH and you might take a look at $FERN as they will be acquiring and institutional crypto custody platform
Anonymous●Jul. 24, 2021 at 9:32 pm
YOU DA BEST!!!
Sepehr Vafaei●Jun. 18, 2021 at 10:34 am
Thank you.
Henry Murray●Jun. 13, 2021 at 1:44 am
Knowledge supports growth & development.
James A. Rades●Jun. 04, 2021 at 8:35 am
Tim What do you see in the future of FSSN (Fision Corp) currently @0.0350 as of 10:00 on 6/4/21
Tim Sykes is a penny stock trader and teacher who became a self-made
millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After
becoming disenchanted with the hedge fund world, he established the Tim Sykes
Trading Challenge to teach aspiring traders how to follow his trading
strategies. He’s been featured in a variety of media outlets including CNN,
Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an
active philanthropist and environmental activist, a co-founder of Karmagawa,
and has donated millions of dollars to charity.
* 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 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”
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