10 Best NASDAQ Stocks Under $20 to Buy

3. Core Scientific, Inc. (NASDAQ:CORZ)

Number of Hedge Fund Holders In Q2 2024: 53

Share Price: $12.01

Core Scientific, Inc. (NASDAQ:CORZ) is a data center company that provides computing capabilities to the blockchain industry. This provides it with key resources, namely GPUs and power, in today’s era of AI computing. Since AI is expected to require vast amounts of data center power, which is scarce given the current power generation infrastructure, Core Scientific, Inc. (NASDAQ:CORZ) stands to benefit from leveraging its data center strength to cater to the needs of the AI industry. Additionally, the firm also benefits from rising Bitcoin prices as it increases its mining margins. Core Scientific, Inc. (NASDAQ:CORZ)’s stock has beaten NVDA’s this year in terms of returns. The shares are up by 246% year to date, primarily on the back of an acquisition offer by cloud company CoreWeave. While Core Scientific, Inc. (NASDAQ:CORZ) rejected the deal, CoreWeave had valued the firm at $1.2 billion which injected fresh life into the stock. The firm has inked deals with Jack Dorsey’s Block for the latest 3 nanometer Bitcoin miners that could extend its competitive advantage in the industry. Similarly, Core Scientific, Inc. (NASDAQ:CORZ) has also inked deals worth 270 megawatts of computing power for high performance computing which are slated to bring it $4.7 billion in revenue for the next 12 years.

Core Scientific, Inc. (NASDAQ:CORZ)’s management shared details of these deals during the Q2 2024 earnings call:

“We have achieved exciting milestones this year, illustrated on Slide 4. We announced a contract with CoreWeave to lease a 16-megawatt data center in Austin for HPC hosting, and we delivered that data center more than 30 days ahead of schedule and began generating revenue from it in the second quarter.

We successfully executed our plans for the April halving, maintaining strong operational performance and favorable cash cost to mine. We have now signed HPC hosting contracts with CoreWeave for a total of 382 megawatts in aggregate total potential revenue of $6.7 billion over the 12 years beginning in 2025 and 2026. We completed 72 megawatts of partially built infrastructure at our Denton, Texas site, bringing our total to about 830 megawatts of operational infrastructure highlighted on Slide 5. We began build-out a partially completed 100-megawatt facility in Pecos, Texas. Stock price appreciation triggered mandatory conversion of secured convertible notes, eliminating $260 million in debt from our balance sheet. We signed an agreement with Block to procure 15 exahash of their new 3-nanometer ASIC chip to refresh and expand our self mining fleet beyond 2024.”