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Penny stock surges 5,700% after investing in crypto: Should you buy?

Tue, Sep 9, 2025, 10:47 AM 2 min read

Shares of Eightco Holdings (Nasdaq: OCTO) skyrocketed more than 5,700% on September 8, hitting an intraday high of $82.98, after the company announced a $250 million strategic move to adopt Sam Altman's Worldcoin (WLD) as a core treasury asset.

The rally extended in pre-market trading on September 9, with the stock climbing another 11% at the time of writing.

This explosive growth came as Eightco unveiled its crypto treasury model, following in the footsteps of Michael Saylor’s MicroStrategy but instead of Bitcoin, the company is betting on Worldcoin, a project associated with biometric identity verification and AI-driven Web3 use cases.

To support this move, the firm raised $250 million via private placement and received an additional $20 million investment from BitMine Immersion (NYSE: BMNR), a leading Ethereum treasury firm chaired by Tom Lee. It also appointed veteran Wall Street analyst Dan Ives as its new chairman, adding more fuel to investor optimism.

But after a near 6,000% intraday spike, traders are now asking the big question: Should you buy, hold, or sell OCTO?

While the excitement around Worldcoin and the involvement of high-profile names like Sam Altman, Tom Lee, and Dan Ives has drawn eyes to Eightco, some analysts have issued cautionary notes.

According to a technical analysis by TipRanks, the overall rating for OCTO is currently “Sell”, based on most short- and mid-term indicators.

Here’s a breakdown:

RSI (14): 47.85 — Neutral
MACD (12,26): <0.01 — Buy Signal
50-Day EMA: $1.44 vs Current Price $45.08 — Sell Signal
200-Day EMA: $1.44 vs Current Price $45.08 — Buy Signal (momentum based)
ROC (Rate of Change): -7.64 — Sell Signal

Despite the price surge, moving average trends show extreme overvaluation, with the stock trading over 30 times above its 20-day average.

An anonymous analyst listed on TipRanks under the alias Carton Boxler maintained a Hold rating with a price target of $43.

Unless you're betting on the narrative and momentum continuing, analysts suggest waiting for a pullback or clearer consolidation before entering a position.

As with any stock that jumps over 5,000% in a day — the risk is as real as the reward.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a licensed financial advisor before making investment decisions.

This story was originally reported by TheStreet on Sep 9, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

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