Watching Watchlist #11 2025 (Swings)

Watching Watchlist #11 2025 (Swings)

Author

jralex

Date

Aug 21, 2025

Volatile Moves

Hype-driven spikes followed by sharp drops

Volatile Moves

Hype-driven spikes followed by sharp drops

Volatile Moves

Hype-driven spikes followed by sharp drops

New Themes

Expansion into crypto, AI, and infrastructure

New Themes

Expansion into crypto, AI, and infrastructure

New Themes

Expansion into crypto, AI, and infrastructure

Speculative Setup

High risk with selective upside potential

Speculative Setup

High risk with selective upside potential

Speculative Setup

High risk with selective upside potential

This is a watchlist composed of the current stocks we are looking to trade none of these are alerts all alerts will be alerted upon entry just like the others on the weekly investment letter.


logo

Company: Bitmine Immersion Technologies

Quote: $BMNR

BT: $18- $26

ST: $60+ 

Sharks Opinion: 

BitMine’s staggering collapse from highs of $161 to below $30 in mere days serves as a stark reminder of how quickly momentum can evaporate when hype runs ahead of fundamentals. What we witnessed was less of a company story and more of a sentiment-driven mania, fueled by crypto enthusiasm and a speculative crowd chasing exposure to Ethereum through equities.

At the core, BitMine’s appeal wasn’t operational excellence or earnings growth. It was its massive Ethereum treasury more than $1 billion worth. That alone made it a magnet for traders looking to capitalize on the recent crypto rally without buying ETH directly. But the cracks were always there. The company isn’t profitable, and its strategy hinges on issuing stock to acquire more Ethereum, essentially diluting shareholders to accumulate an asset that investors can buy more efficiently themselves.

We held off on publishing this breakdown until the recent pullback, which finally gave us the entry we were waiting for. Make no mistake BMNR is not a fundamental investment. But it checks the right boxes in the current market environment: crypto-adjacent, liquid, and narrative-driven. As a thematic play, it ranks among the top crypto treasury trades.

Still, it’s important to ask the hard question: if the primary draw is Ethereum exposure, is owning BitMine worth the added volatility, dilution risk, and lack of operating cash flow? For short-term traders, it might be. But for long-term investors, the better option may be to simply hold ETH and skip the middleman.

Description: Bitmine Immersion Technologies, Inc. operates as a blockchain technology company primarily in the United States. The company engages in hosting third-party equipment used in mining of digital asset coins and tokens, primarily Bitcoin, as well as the self-mining for its own account. It also sells mining equipment to customers and related parties. In addition, the company offers data centers, which provides power, racks, proprietary thermodynamic management, redundant connectivity, and security services, as well as software, which provides infrastructure management and custom firmware. 

BitMine started as a Bitcoin miner but its story took a dramatic turn this summer.

Originally touting its immersion-cooled Bitcoin mining tech as more energy-efficient and cost-effective than traditional models, BitMine generated just $3.3 million in revenue for fiscal 2024. That number, while showing a 413% year-over-year jump, was still modest, with nearly all of it coming from mining operations.

Then came the pivot.

On June 30, the company made headlines by announcing Ethereum would replace Bitcoin as its primary financial reserve. Alongside this announcement came a $250 million private placement 55 million shares sold at $4.50 apiece to crypto-aligned insiders, including Tom Lee (appointed as chairman) and Kraken Ventures. Despite not having purchased a single ETH token at the time, the mere announcement of this pivot ignited a massive retail frenzy, driving the stock up over 696% in one trading session.

What fueled that move? Scarcity. BitMine’s tradable float was just 3.2 million shares barely 5% of total shares outstanding which created artificial demand pressure. As excitement snowballed, the stock soared over 2,500% to $160 per share before fundamentals caught up with the narrative.

Here’s the twist: those 55 million newly issued shares came with full resale rights, meaning insiders could offload them once BitMine filed an S-1 or S-3 registration. It’s a textbook case of retail euphoria meeting sophisticated exit liquidity.

Eventually, the company did make its first Ethereum purchase. By mid-July, it held over 300,000 ETH (including 60,000 via in-the-money options), worth more than $1 billion. BitMine’s stated goal? To acquire and stake 5% of the entire Ethereum supply a lofty ambition framed around ETH’s growing role in smart contracts, stablecoins, and DeFi.

The narrative has legs. Stablecoin adoption is gaining ground in both retail and institutional channels, and Ethereum remains the dominant smart contract platform. But BitMine’s pivot reads more like a market timing move than a strategic overhaul, especially given that its core operations remain modest and unproven.

For traders, this is a pure momentum name with a compelling theme. For investors, it’s a high-risk play built on the thinnest of operating foundations and it’s already shown how violently the pendulum can swing once the hype cools off.

The rocket that launched BitMine’s stock into the stratosphere started with one explosive announcement: On July 3rd, the company declared it had acquired 566,000 Ethereum tokens worth over $2 billion shifting to a bold, Ethereum-based treasury strategy. The news positioned BitMine as a pioneer of a new asset-light, crypto-native corporate model. Investors piled in fast. The stock soared. Social media lit up. Suddenly, BitMine wasn’t just a miner it was being talked about as the MicroStrategy of Ethereum.

But the excitement was short-lived.

As details emerged, the sustainability of this model came under scrutiny. The company’s operations didn’t justify the valuation. Critics raised a pointed question: Was this truly an innovative foray into decentralized finance, or a calculated spectacle designed to spark a retail frenzy?

Skepticism is now taking center stage. Analysts and market observers note the company still lacks a clear revenue engine, and its Ethereum accumulation while headline-grabbing is essentially a high-leverage bet on a volatile asset. If ETH rallies, BitMine could ride the wave. But if it falters, the whole strategy starts to unravel.

That’s precisely what we’re beginning to see.

Ethereum’s Stumble Brings BitMine Down With It

Ethereum’s recent decline has only intensified pressure on BMNR. ETH failed to hold its upward momentum, slipping nearly 5% after stalling below the key $4,000 psychological threshold. With BitMine’s valuation now tethered so tightly to Ethereum’s price action, the stock has become a leveraged proxy for ETH sentiment without the transparency, security, or simplicity of holding the actual crypto.

For investors, this creates a treacherous setup. BitMine is no longer being valued like an operating business it’s trading like a synthetic crypto ETF with questionable mechanics and a float susceptible to manipulation.

The result? A price chart that reads more like a cautionary tale than a bullish case study.

Bottom Line: BitMine’s Ethereum strategy was brilliant in capturing attention execution matters. And right now, BitMine is walking a tightrope between crypto innovation and retail disillusionment.

 With Ethereum under pressure and confidence in the company’s fundamentals eroding, the glow of its $2 billion headline is starting to fade into something much more familiar: a high-flying hype cycle returning to Earth.

ThinkEquity initiated coverage with a Buy rating on BitMine Immersion Technologies and a price target of $60.00



logo

Company: Galaxy Digital 

Quote: $GLXY

BT: $24-$25

ST: $45-$50

Sharks Opinion: 

As blockchain, crypto, and AI continue to converge and redefine the future of finance and compute, few companies are as uniquely positioned at the intersection of these themes as Galaxy Digital (GLXY). Long known for its deep roots in digital asset management and trading, Galaxy is quietly building a second identity one that might soon become the core of its valuation: a next-gen infrastructure powerhouse.

While investors have traditionally viewed Galaxy as a financial services firm catering to digital assets, that view is increasingly outdated. Beneath the surface lies Helios Galaxy’s flagship data center campus in West Texas which is rapidly emerging as the company’s most compelling and misunderstood asset.

And with the stock price pulling back this week, the setup for a tactical swing trade is taking shape.

Why Helios Matters
Helios is more than a mining facility. It’s a scalable, high-performance compute site with the potential to tap directly into the booming demand for AI infrastructure. CoreWeave, one of the most talked-about AI infrastructure firms today, is already leasing capacity from Galaxy an early signal that this site could play a strategic role in the broader AI buildout.

We’ve seen how similar infrastructure themes have lit a fire under stocks like Core Scientific and the narrative tailwinds behind names like CoreWeave. In our view, Galaxy could be next especially as market participants begin to appreciate the margin-rich opportunity in leasing compute to AI firms, rather than just mining Bitcoin.

Valuation Disconnect: The Hidden Opportunity
Here’s where things get interesting. Galaxy is currently valued at just $3.8 million per megawatt (MW) of deployed data center capacity. Compare that to traditional data center operators, which often trade at $27 million per MW and command EBITDA multiples in the 20–30x range. That’s a staggering valuation gap.

Description: Galaxy Digital Inc. engages in the digital asset and blockchain businesses. It operates through three segments: Global Markets, Asset Management, and Digital Infrastructure Solutions. The company provides various financial products and services to individuals and institutions, such as digital asset trading, derivatives, structured products, financing, capital markets, and merger and acquisition services, digital asset spot and derivatives trading, and bespoke lending and structured products. 

Galaxy operates a diversified portfolio of crypto-native businesses, but beneath that umbrella lies something even more strategic: a transformation story rooted in a serendipitous acquisition that may define its future.

Galaxy’s Crypto Foundation
At its core, Galaxy is a digital asset holding company with a balance sheet rich in liquid assets like Bitcoin, and a suite of operating businesses designed to serve the maturing digital asset economy. These include:

Financial Services: A traditional investment banking and advisory arm, along with asset management, trading, and lending.

Staking-as-a-Service: A high-growth business enabling token holders to earn yield by participating in network validation on proof-of-stake chains.

With this foundation, Galaxy already commands attention in the crypto ecosystem. But it’s what happened in late 2022 that makes this name so interesting today.

The Helios Pivot: Strategic Luck
In what even management describes as “good fortune,” Galaxy acquired the Helios data center in West Texas for just $65 million. The distressed seller, Argo Blockchain, was on the brink of collapse and needed to offload the asset to stay solvent. Galaxy bought the facility intending to mine Bitcoin and initially did just that.

But as AI and high-performance computing (HPC) demand exploded in 2023 and 2024, Galaxy quietly began pivoting Helios away from Bitcoin mining and toward leasing infrastructure to AI-focused tenants. 

Now, Helios is no longer just a mining site. It's being reimagined as an AI data center marking Galaxy’s intentional move away from the cyclicality of crypto mining toward recurring infrastructure revenue that scales with AI.

The Investment Thesis: Bitcoin Miner to AI Enabler
Galaxy is now the cleanest public play on the “Bitcoin miner-to-AI operator” pivot a narrative increasingly validated by peers like Core Scientific and Hut 8, but executed with more discipline and foresight. What sets Galaxy apart?

While most miners have continuously diluted shareholders to stay afloat, Galaxy has grown book value per share from ~$1 in 2018 to over $6 in 2025, and is one of the only crypto public companies actively buying back stock. That’s a serious signal of capital discipline.

Diversification by Design: Unlike pure-play miners, Galaxy’s crypto operations were never its lifeline. Its strength lies in its diversified revenue from trading and advisory to staking and infrastructure. The Helios transformation is simply the next logical evolution.

Why This Matters Now

Galaxy’s stock has pulled back in recent weeks, even as AI infrastructure names rally. That disconnect is likely a product of misperception: many investors still lump Galaxy in with cyclical, cash-burning Bitcoin miners. But Helios and its transformation are quietly rewriting the narrative.

As demand for AI compute soars, and as investors seek profitable, infrastructure-backed exposure to the digital economy, Galaxy is positioning itself as a rare hybrid crypto-native, AI-aligned, and undervalued.

Rosenblatt Maintains Buy on Galaxy Digital, Raises Price Target to $36

Jefferies Initiates Coverage On Galaxy Digital with Buy Rating, Announces Price Target of $35

Piper Sandler Maintains Overweight on Galaxy Digital, Raises Price Target to $36



logo

Company: Xometry, Inc.

Quote: $XMTR

Sharks Opinion: 

We’ve traded Xometry before and with good reason. Back in Q1, we took a +25% gain on a quick four-day swing trade following its earnings beat. When a stock runs that hard, that fast, we prefer to ring the register and move on. But XMTR didn’t just spike and fade like many high-beta names. It held those gains and then kept climbing.

Now with the stock pushing higher on strong volume and real institutional interest, it’s time to reframe the story: this isn’t a meme stock or speculative squeeze it’s a business with momentum, and a model aligned with structural macro tailwinds.

What Is Xometry?
Xometry operates a custom manufacturing marketplace think Uber or Airbnb, but for precision manufacturing.

Instead of building or owning factories, Xometry uses AI-powered software to instantly quote jobs for things like aerospace parts, automotive components, or even medical devices. Then it routes those jobs to a vast network of vetted machine shops around the country (or globe), all while managing delivery, logistics, and quality control.

In a world where supply chains are still broken and companies are desperate for speed, agility, and price certainty, Xometry’s platform solves real-world headaches not just for procurement teams, but for the 10,000+ small-to-midsize machine shops that often struggle with deal flow.

The Setup in 2025
Xometry is perfectly positioned within two major themes gaining serious investor attention this year:

AI Deployment in the Physical Economy: Everyone's focused on AI software, but real impact happens when AI hits the real world. XMTR’s quoting and supply optimization system is a tangible example of AI unlocking efficiencies in legacy industries like manufacturing, logistics, and procurement.

Trade vs. Investment?
While we like the long-term business model and secular tailwinds, XMTR is still a volatile name. We’d prefer to buy pullbacks especially if it dips back below $30, which would present a clear risk-reward entry for another swing.

That said, the price action lately suggests this could be more than a swing. Sustained upside volume, strong RS (relative strength), and no signs of “round-tripping” earnings gains hint that institutions are beginning to treat Xometry as a real player, not a trade

BT: $28-$30

ST: $35-$40

Description:  Xometry, Inc. operates an artificial intelligence (AI) powered online manufacturing marketplace in the United States and internationally. The company's marketplace uses AI to assist buyers to source custom-manufactured parts and assemblies and attain instant pricing and lead times. 

Citigroup Maintains Buy on Xometry, Lowers Price Target to $39

UBS Maintains Neutral on Xometry, Raises Price Target to $33

Cantor Fitzgerald Maintains Underweight on Xometry, Raises Price Target to $20

JMP Securities Reiterates Market Outperform on Xometry, Maintains $42 Price Target

RBC Capital Maintains Sector Perform on Xometry, Raises Price Target to $40



logo

Company: Kraken Robotics Inc.

Quote: $PNG.V / $KRKNF

BT: $1.50 - $2.00

ST: $6-$8

Sharks Opinon:

Kraken Robotics is one of those under-the-radar names that popped up on our radar while digging through recent Anduril-related contracts. It's a Canadian-based marine tech company that’s quietly building some of the most advanced sonar and subsea power systems for unmanned underwater vehicles (UUVs), with end markets ranging from defense to offshore energy. Think of it similar to Coda Octopus if you remember that trade from the pandemic era but with even bigger upside potential if it plays out.

What started as a passion project for its founders has grown into a legitimate business with global operations in the U.S., UK, Germany, Brazil, and Denmark. Kraken is now positioned at the intersection of several key themes: underwater autonomy, energy resilience, and geopolitical instability in contested waters.

Its tech is specialized, and that’s exactly what makes it valuable right now. Kraken’s SeaPower batteries are seeing massive demand so much so that Anduril is building out a plant that could alone represent $600 million in annual demand, not even counting their larger Ghost Shark autonomous systems. The supply-demand imbalance works heavily in Kraken’s favor, and the company has the capital to scale.

On the financial side, margins are extremely healthy gross margins north of 60% and EBITDA margins above 20% which is rare for a company this small. It’s not exactly cheap at current prices, but we think the US$1.50 (CAD$2.25) zone is attractive for a first tranche, especially for those looking to bet on the growth of underwater defense systems.

This is a high-risk, high-reward name thinly traded, speculative, but potentially explosive if UUV demand continues to surge and Kraken executes. Definitely one to watch if you’re comfortable riding volatility with conviction.

You can read the our full breakdown on Kraken here:

"Domo Arigato, Mr. Roboto"Robot Stocks Overview 2025

Description: Kraken Robotics Inc., a marine technology company, engages in the design, manufacture, and sale of sonar and optical sensors, batteries, and underwater robotic equipment for unmanned underwater vehicles used in military and commercial applications in Canada, the Asia Pacific, Europe, the Middle East, Africa, North America, and internationally. It operates in two segments, Products, and Services. The company offers AquaPix miniature interferometric synthetic aperture sonar (MINSAS), a configurable MINSAS; and SeaPower, a pressure tolerant deep sea batteries.



logo

Company: Zevia PBC

Quote: $ZVIA

BT: Our Previous buy target doesn't seem to be coming anytime soon if volumes remain elevated we will join in on a small allocation.

ST: $4 (no buy out), $8+ if we see M&A action

Sharks Opinion: 

Zevia is a name I’ve become familiar with over the past year not through the markets, but as a regular buyer of their zero-sugar sodas at Costco.

It wasn’t until recently, following a massive earnings beat, that I realized the brand was publicly traded. Since that report, ZVIA shares are up 38.2%, currently trading at $2.82.

For long-time members of Stock Sharks, you know we’ve had a consistent focus on the beverage sector — particularly because of its history of high-profile M&A activity. Legacy giants like Coca-Cola and PepsiCo routinely acquire fast-growing upstarts to secure dominance on retail shelves. Just last quarter, PepsiCo acquired Poppi in a multi-billion-dollar deal a reminder that if a brand gains enough traction, it doesn’t stay independent for long.

Zevia went public during the pandemic, debuting around $13 per share with a valuation near $1 billion. Since then, the stock has dropped more than 73%, creating what we see as a high-risk, high-reward setup. While a full return to IPO pricing is unlikely under organic growth alone, a strategic acquisition by a major beverage conglomerate could bridge that gap quickly.

This is a speculative swing trade, grounded in the belief that Zevia will continue expanding its distribution channels, build brand equity, and ultimately position itself as a compelling takeout target. We acknowledge the risks — the beverage space is brutally competitive, and execution will be key but the asymmetric upside if a buyer steps in is what makes this trade worth a closer look.

We’re watching closely for signals around distribution growth, retail partnerships, and revenue scaling all of which could validate the M&A angle.

Description:  Zevia PBC develops, markets, sells, and distributes zero sugar beverages in the United States and Canada. The company offers soda, energy drinks, and organic tea under the Zevia brand name. It serves grocery distributors; national, convenience, natural products, and warehouse club retailers; and retailers through a network of grocery, food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as natural product stores and specialty outlets. The company was founded in 2007 and is headquartered in Encino, California.

Zevia PBC positions itself as a better-for-you beverage company, with a product lineup that spans sodas, energy drinks, and teas all sweetened exclusively with stevia, a natural, zero-calorie alternative to sugar and artificial sweeteners.

As the only major beverage brand offering carbonated drinks entirely sweetened by stevia, Zevia holds a unique spot in the marketplace. This distinct positioning could serve as a powerful moat over time, particularly as consumer demand continues to shift toward clean-label, health-conscious alternatives.

Unlike traditional sweeteners such as aspartame, which have come under increasing scrutiny for potential health risks including links to cancer and cognitive issues, according to bodies like the International Agency for Research on Cancer stevia is widely regarded as a safer, plant-derived alternative. With growing public awareness of these concerns, Zevia’s stevia-first formula offers a compelling value proposition.

From personal experience as both a Zevia and diet soda consumer, I’d estimate Zevia’s sodas taste 20–30% better than traditional diet drinks, with no lingering artificial aftertaste. That subjective edge, combined with a cleaner health profile, could give Zevia a durable advantage in attracting and retaining health-conscious customers.

Zevia’s continued success on major retail shelves  including Walmart and Costco  reinforces its mainstream appeal. As the brand scales further and expands its presence across additional retail and e-commerce channels, the foundation for long-term growth becomes increasingly credible.

Zevia is still in the early innings of its public company journey, but its differentiated product strategy, alignment with long-term health trends, and growing distribution footprint all point toward meaningful upside. For investors looking for exposure to the next wave of health-driven beverage innovation, ZVIA is worth a closer look.

Zevia (ZVIA) delivered a strong first quarter for calendar year 2025, exceeding expectations on revenue, earnings, and profitability, even as top-line growth declined slightly. The results point to improving operational efficiency and disciplined execution in a competitive and cost-sensitive consumer packaged goods environment.

Key Financial Highlights
Revenue: $38.02 million vs. $37.38 million consensus

Beat estimates by 1.7%, though down 2.0% YoY

Decline driven by higher promotional activity, partially offset by expanded Walmart distribution and a 0.1% volume increase

GAAP EPS: -$0.08 vs. -$0.12 expected (31% beat)

Adjusted EBITDA: -$3.27 million vs. -$5.9 million expected

44.6% beat with EBITDA margin improving to -8.6%

Operating Margin: -16.8%, up 200 bps from -18.8% in Q1 2024

Free Cash Flow: -$2.94 million vs. -$3.24 million YoY

Showing gradual improvement toward breakeven

Gross Margin: 50.1%, up 440 bps YoY

Driven by lower product costs and improved inventory management

Partially offset by higher promotional spend

Expense Breakdown
Selling & Marketing Expenses: $15.3 million (40.3% of net sales)

Up from $15.1 million (38.8%) in Q1 2024

Marketing Spend: $6.2 million (16.2% of net sales)

Up significantly from $2.7 million (7.0%) last year

Reflects increased brand-building and awareness campaigns

Selling Expenses: $9.1 million (24.1% of net sales)

Down from $12.3 million (31.8%) last year

Indicates enhanced sales efficiency and cost control

Balance Sheet & Outlook
Cash & Equivalents: $27.7 million

Debt: None

Credit Facility: $20 million available and unused

The company reconfirmed full-year revenue guidance of $160.5 million (midpoint) and raised full-year EBITDA guidance to -$9.5 million, slightly above consensus expectations.

Telsey Advisory Group Maintains Market Perform on Zevia, Maintains $3 Price Target

Goldman Sachs Maintains Neutral on Zevia, Raises Price Target to $3.75

Wells Fargo Maintains Equal-Weight on Zevia, Lowers Price Target to $1

Morgan Stanley Maintains Equal-Weight on Zevia, Lowers Price Target to $2

Have a question? 

We’re just one click away. Let’s dive into your investment journey.

Have a question? 

We’re just one click away. Let’s dive into your investment journey.

Have a question? 

We’re just one click away. Let’s dive into your investment journey.