We recently compiled a list of the 7 Best Bitcoin Stocks To Buy Right Now. In this article, we are going to take a look at where Core Scientific, Inc. (NASDAQ:CORZ) stands against the other bitcoin stocks.
Future of Bitcoin: What Can We Expect By 2024’s End?
Skyridge’s CEO Anthony Scaramucci expects Bitcoin to reach $100,000 by the end of 2024. In an interview with CNBC, he mentioned a number of factors working in this situation for instance the German government selling bitcoin, the Mt. Gox bankruptcy, and the April reward halving which has resulted in selling pressure in the ETFs. Let’s take a look at these factors.
In June, the German government started to sell bitcoin from a wallet operated by the Federal Criminal Police Office. The crypto reserves are also being sent by the government to exchanges such as Coinbase, Bitstamp, and Kraken. As this selling continued through July, Bitcoin’s price dropped dramatically and hit its lowest level since February 2024.
Another important event is the Japanese bitcoin exchange Mt. Gox which collapsed after being hacked 10 years ago, unloading $9 billion of coins. Mt. Gox used to be the biggest spot Bitcoin exchange across the globe. While it has started to repay in bitcoin and in bitcoin cash to its creditors through designated crypto exchanges., the market will be impacted. Bitcoin which was trading at $600 is worth more than $60,000 as of now. Those who are to be reimbursed in the cryptocurrency itself will witness their coin values rising by 10,000% over the last 10 years. Analysts expect this move to result in heavy but short-lived selling in bitcoin since Mt. Gox creditors are likely to sell some of their bitcoin to benefit from seismic gains. However, it is being believed that there is enough liquidity to absorb these sales over the next few months.
Additionally, FTX is going to release roughly $16 billion of cash to investors who had their accounts at the exchange. In the opinion of Scaramucci, 40 to 50% of that will be going back to the asset class as these people are early adopters in the digital asset space, known to be typically more loyal.
Simultaneously, Bitcoin experienced a reward halving in April. The halving event is pre-planned and takes place once every four years to slow the pace at which new coins are created. Through this reduced supply of the coin, the concept of Bitcoin as digital gold remains maintained. The event typically makes miners sell some of their bitcoin to keep their revenues up thereby putting temporary pressure on Bitcoin.
Our Methodology:
In order to compile a list of the 7 best Bitcoin stocks to buy right now, we sifted through online rankings and ETFs to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 7 stocks from our list which had the highest number of hedge fund holders. The 7 best Bitcoin stocks to buy right now have been arranged in ascending order of their hedge fund holders as of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A man holding a phone and gesturing to a sign in a physical store that reads ‘now accepting Bitcoin’.
Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 53
Core Scientific, Inc. (NASDAQ:CORZ) is a leader in digital infrastructure for Bitcoin mining and high-performance computing. The firm was founded in 2017 and has scaled its operations over the years to be the first digital asset miner in North America to achieve 100, 250, and 500 megawatts of operating capacity. The firm engages in Bitcoin mining while it offers hosting services for Bitcoin mining and high-performance computing customers at its eight operational data centers including 2 in Georgia, 1 in Kentucky, 1 in North Carolina, 1 in North Dakota, and 3 in Texas.
The market position of Core Scientific, Inc. (NASDAQ:CORZ) remains strong as one of the largest bitcoin minors in North America. The firm receives the majority of its revenue from earning Bitcoin for its own account. While Core Scientific is strengthening its Bitcoin mining business, it is also focusing on expanding its HPC hosting capacity. The Bitcoin miner contracted 382 megawatts of infrastructure to host high-performance computing, something which will bring a potential revenue of almost $6.7 billion over 12 years. Hence, the company’s high-power digital infrastructure portfolio based on Bitcoin mining and high-performance computing positions it well for market leadership and growth.
Core Scientific successfully navigated the April halving event. During the second quarter, the firm reported a total revenue of $141 million, earned 1,680 bitcoins, operated 19.4 exahashes per second self-mining hash rate, and added 72 megawatts of infrastructure at the Denton, Texas data center. The firm has also reported HPC hosting as a separate segment which shows the growth driving ability for the business. The strength of its respective businesses and the status of earning more bitcoin than any other public company in North America since 2021 ranks Core Scientific, Inc. (NASDAQ:CORZ) among the 7 best Bitcoin stocks to buy right now. Core Scientific has 59 hedge fund holders, as of Q2 2024.
Overall CORZ ranks 1st on our list of the best bitcoin stocks to buy. While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CORZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.