Over the festive season, as the world welcomed Christmas and New Year's, conversations likely gravitated toward Bitcoin and cryptocurrencies, as the popular digital currency has surged higher in recent months. Much like how Memorial Day and Labor Day weekends set the stage for engaging discussions earlier in the previous year surrounding Artificial Intelligence (AI), the resurgence of Bitcoin and the allure of the broader cryptocurrency market continue to captivate investors.

For those inclined toward higher-risk investments, exploring opportunities in small-cap cryptocurrencies under $5 might pique interest. Despite the inherent risks, these investments could yield substantial rewards if they perform well. Given the recent surge and ongoing enthusiasm surrounding Bitcoin, the potential and likely Bitcoin spot ETF approval, and the broader crypto landscape, compiling a list of promising small-cap crypto-related stocks for consideration seems prudent.

Here's an overview of five small-cap crypto stocks trading under $5

Bitfarms Ltd. (NASDAQ: BITF)

Bitfarms operates as a blockchain infrastructure company, focusing on owning and operating cryptocurrency mining farms that support the decentralized financial infrastructure of the global Bitcoin network.

The stock has experienced heightened volatility in the past, represented by its expansive range over the past several years. More recently, the stock has enjoyed a stellar run thanks to the surge in Bitcoin. Over the previous three months, shares of BITF have climbed almost 200%. 

Bit Digital Inc. (NASDAQ: BTBT)

Bit Digital, Inc., formerly known as Golden Bull Limited, operates in bitcoin mining, digital asset staking, and treasury management. Founded in 2015, it's based in New York, NY.

The small-cap stock, with a market valuation of just over $300 million, has also experienced extreme volatility in the past, like BITF. Last trading at $3.84, the stock has fallen dramatically from its January 2021 high of $33.

BTCS Inc. (NASDAQ: BTCS)

BTCS Inc., previously Bitcoin Shop, Inc., specializes in U.S.-based blockchain infrastructure and staking. They secure blockchain operations, run validator nodes on innovative blockchain networks, and provide StakeSeeker, a platform enabling crypto holders to earn rewards via network consensus. 

The company has a market capitalization of just $31 million and an average daily volume of less than one million shares. Both factors might contribute to heightened volatility in the trading of its shares. Furthermore, analyst coverage of the stock is limited. Just one analyst, HC Wainwright, has coverage on the stock, with a Buy rating and a price target of $3.

Argo Blockchain (NASDAQ: ARBK)

Argo Blockchain and its subsidiaries operate globally in the bitcoin and cryptocurrency mining sector. They specialize in mining using purpose-built computers designed for intricate cryptographic algorithms. Originally named GoSun Blockchain Limited, it rebranded to Argo Blockchain plc in December 2017.

Like the names mentioned above, ARBK has fallen dramatically from its highs during the previous Bitcoin and crypto bull market. However, the stock has steadily pulled away from its 52-week low in recent months, climbing as much as 278% in the previous three months. 

Bitcoin Global Capital Limited (NASDAQ: BTCT)

BTC Digital Ltd. operates in the cryptocurrency/bitcoin mining sector, with mining machine resale and rental services. Formerly known as Meten Holding Group Ltd., it rebranded to BTC Digital Ltd. in August 2023. 

BTCT’s float of under 1 million shares and significantly small market capitalization of just $2.74 million make the stock extremely susceptible to significant price fluctuations and volatility. Therefore, as with the overall sector, investors must conduct thorough due diligence before acting further. 

These small-cap crypto stocks might present intriguing opportunities, primarily relevant for the appropriate investor or trader. However, it's crucial to recognize the heightened volatility and speculative nature inherent in both the cryptocurrency and small-cap stock markets. Conducting thorough due diligence and adopting a risk-aware investment strategy is paramount before considering investments in these volatile assets.