We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.

Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.

Penny Stock of the Day: HIVE Digital Technologies Ltd. (NASDAQ: HIVE)

Today’s penny stock pick is the technology company, HIVE Digital Technologies Ltd. (NASDAQ: HIVE).

HIVE Digital Technologies Ltd. engages in the building and operating data centers powered by green energy in Canada, Sweden, Iceland, Switzerland, and Paraguay. The Company operates the mining and sale of digital currencies and performance computing hosting. The company also provides infrastructure solutions, including the provision of computational capacity to distributed networks in the blockchain industry. The company was formerly known as HIVE Blockchain Technologies Ltd. and changed its name to HIVE Digital Technologies Ltd. in July 2023.

Website:  https://hivedigitaltechnologies.com/

Latest 10-k report:  https://www.sec.gov/Archives/edgar/data/1720424/000106299325012159/form40f.htm

Analyst Consensus: As per TipRanks Analytics, based on 5 Wall Street analysts offering 12-month price targets for HIVE in the last 3 months, the stock has an average price target of $6.70, which is nearly 198% upside from current levels.

Analysts | Source: TipRanks.com

Potential Catalysts / Reasons for the Hype:

  • HIVE has aggressively expanded its Bitcoin mining hashrate, surpassing 11.4 EH/s in June 2025 and targeting 25 EH/s by year-end. This growth enhances its mining capacity and competitiveness, especially post-Bitcoin halving, potentially boosting revenue if Bitcoin prices remain favorable.
  • The company is diversifying into high-performance computing (HPC) and AI-driven cloud services, with a goal of $100 million in AI revenue from its Paraguay operations. This pivot reduces reliance on crypto mining and taps into the growing AI market, attracting investor interest.
  • Rumors about potential additional partnerships in the blockchain or AI space, following HIVE’s recent collaboration with a leading blockchain firm.
  • HIVE’s recent partnership with a leading blockchain firm and upgrades to its infrastructure are expected to improve computational efficiency and profitability. These moves signal long-term growth potential.

On analyzing the company’s stock charts, there seem to be multiple bullish indications…

Bullish Indications

#1 Falling Wedge Pattern Breakout: The daily chart shows that the stock has been forming a falling wedge pattern for the past several months. These are marked as purple lines. It has typically taken support at the bottom of the wedge before bouncing back. The stock has currently broken out of the falling wedge pattern. Once the stock breaks out of the falling wedge pattern, it could move higher.

HIVE – Daily Chart

#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.

#3 Price above MA: The stock is currently above its 50-day SMA, indicating that the bulls have currently gained control.

#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.

#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink dotted line. This looks like a good area for the stock to move higher.

HIVE – Weekly Chart

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for HIVE is above the price of $2.40.

Target Prices: Our first target is $4.00. If it closes above that level, the second target price is $5.50.

Stop Loss: To limit risk, place a stop loss at $1.40. Note that the stop loss is on a closing basis.

Our target potential upside is 67% to 129%.

For a risk of $1.00, our first target reward is $1.60, and the second target reward is $3.10. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers 2x to 3x more potential upside than downside.

Potential Risks / Red Flags:

  1. The company has a history of net losses.

    HIVE – Consolidated Statements of Operations

  2. HIVE’s financial performance is closely tied to Bitcoin prices, as it primarily mines Bitcoin. Continued volatility in Bitcoin prices could pressure profitability and stock value.
  3. Despite being a loss-making company, the executives are being paid significant compensation. For the year ended March 31, 2025, key management compensation included salaries and wages paid to key management personnel and directors of $1.2 million and share-based payments of $7 million (2024 – $4.7 million).
  4. HIVE reported significant losses in Q4 FY2025, highlighting ongoing profitability struggles. These losses stem from operational costs and market fluctuations.
  5. The cryptocurrency mining industry faces growing regulatory challenges globally, which could increase operational costs or restrict HIVE’s activities. Recent reports noted regulatory headwinds affecting the blockchain sector, including potential restrictions on energy-intensive mining.

As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!

Happy Trading!

Trades of the Day Research Team

READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.

Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.

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