Powerbridge Technologies stock (NASDAQ:PBTS) is cheap. It has been in a downtrend for a few months now. But the chart looks ready to reverse and volume has been picking up in recent days.
PBTS is a growth driven technology company that is primarily engaged in Powerbridge SaaS solutions and Powerbridge Blockchain applications and Cryptocurrency Mining. The company mines both Bitcoin and Ethereum, with the aim of increasing their assets to include 10,000 miners for Bitcoin. The Powerbridge SaaS (Software as a Service) integrates AI, big data, and IoT technologies offering SaaS platforms for cross-border eCommerce, supply chain, data intelligence and IoT applications and devices.
Eyes are turning to crypto miners and PBTS especially as Bitcoin hit its all-time high and other cryptos look set to follow. Popular names include: SOS Limited (SOS, market cap of $440M), Marathon Digital Holdings (MARA, market cap of $5.3B), Canaan Inc (CAN, market cap of $1.3B) and Riot Blockchain (RIOT, market cap of $3B). Each of these is up between 30 to 40% in the last two weeks. PBTS is a small cap company, much smaller than their counterparts, only at $50M.
So PBTS are aiming to have 10,000 miners in the near future. How does that compare to the others. Marathon being the biggest in market cap, also have the largest quantity at around 133,000. Riot have only 6,040 and SOS have 10,000, with only 50% are in operations. PBTS are undervalued as a growth stock. SOS are 10x the size but are at a similar mining level.
Carbon free energy
One criticism that came upon Bitcoin was how much energy it uses, with Elon Musk stating his concern earlier this year. Where PBTS thrive is their focus on maximising the use of carbon free clean energy power. This topic has become topical in recent months as governments call for more companies to focus more on clean energy.
One risk for PBTS and other miners is that their value is heavily based on crypto and blockchains value. China have recently banned cryptocurrencies but the US have clarified their opinion and fear has eased among investors. This was one of the main drivers of Bitcoins recent run. Blockchain looks to be continually building its value. In the future, most industries will be relying on it to hold and use their information. This leads us to believe that the risk is minimal for crypto miners, especially PBTS who have a strong Blockchain sector of their business.
The chart has a 52 week range of $0.95 to $9.65. The price closed yesterday at $1.03. The chart has formed a descending wedge on the daily from mid August. Current momentum in the sector looks to set the chart up for a breakout in the coming days. Recall that the other miners are up between 30% to 40%. PBTS has not moved, but is due to catch up. Getting above the 50DMA would be a realistic target for the coming days, which is currently at $1.30. But with a much smaller market cap, PBTS has more potential to out-do their competitors in performance. In July, the stock reached a high of $3.64, which I think could be reached again if cryptos momentum keeps up.
My thoughts for the Powerbridge Technologies stock is that it has a very small risk for a much larger reward. I would risk off recent lows of $0.97. I think $1 should hold and the potential from here is 30% minimum, a reclaim of the 50DMA. The sector is thriving and PBTS is lagging.