You don't have a trademark on the name NastyPenny.
Of course, I don't have a trademark on the name "NastyPenny." I never claimed to have one on the name "NastyPenny." However, I do have a trademark on "Bitcoin Penny." Inserting the word "Nasty" into the middle of "Bitcoin Penny" is the infringement.
Correct!
Trademark: "Mercedes Benz"
Trademark infringement: "Mercedes Nasty Benz"

What an insult!
However it doesn't work like that. First of all you can't claim to have copyrights on the word ''bitcoin'' nor the word ''penny'' They only have copyrights on ''BitcoinPenny'' as a whole, not separate. You can't claim copyright if someone decides to use ''bitcoin'' or ''penny'' just like ''wholefoods'' would not be able to claim copyright if someone uses the word food.
Do you mean if someone uses "BtcoinPenny" = trademark infringement and if someone uses "Bitcoin Penny" = no trademark infringement?
Does he claim copyright because someone uses "bitcoin"
or "penny" or does he claim copyright because someone uses
both and added Nasty between it?
As far as I can tell, the only part of the trademark used was the word penny. (Someone can correct me if I missed something).