12 Best Small Cap Tech Stocks to Buy

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4. Core Scientific Inc. (NASDAQ:CORZ)

Market Capitalization as of September 11: $2.58 billion

Number of Hedge Fund Holders: 53

Core Scientific Inc. (NASDAQ:CORZ) is a leader in digital infrastructure for bitcoin mining and high-performance computing and operates dedicated, purpose-built facilities for digital asset mining. It is a premier provider of digital infrastructure, software, and hosting services. It is the first digital asset miner in North America to achieve 100, 250, and 500 megawatts of operating capacity.

It announced a contract with CoreWeave to lease a 16-megawatt data center in Austin for high-performance computing (HPC) hosting. This data center was delivered more than 30 days ahead of schedule, and revenue generation from it began in the second quarter of 2024.

The revenue from Bitcoin mining increased by 14% in Q2 compared to the same period last year. This was mainly due to a higher Bitcoin price and an increase in mining operations. However, the number of bitcoins earned decreased by 52% due to the Bitcoin halving event and increased competition. The costs for bitcoin mining increased due to depreciation, higher wages, and stock-based compensation.

Core Scientific Inc. (NASDAQ:CORZ) had a successful second quarter, despite the Bitcoin halving event in April. The company earned $141.10 million in revenue (including $5.5 million in HPC hosting revenue from the Austin data center), and improved 11.18% from Q2 2024, and mined 1,680 bitcoins.

The company earns most of its revenue from mining bitcoin and is expanding into high-performance computing. This expansion could generate nearly $6.7 billion in revenue over the next 12 years. Core Scientific’s strong position in digital infrastructure puts it in a good position for future growth. 53 hedge funds hold long positions in it.

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