Jim Cramer Talked About These 8 Stocks

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

Number of Hedge Fund Holders: 58

Cramer cautioned care with buying Core Scientific, Inc. (NASDAQ:CORZ) as he explained that it is “losing money”.

“Yeah, I’ll tell you… if you think that today was a seminal market, in other words, that the Fed did something that is gonna make people very nervous, this stock will go down for maybe a couple [of] days. It is very intriguing, but remember, it’s losing money. Losing money stocks will not do well in this newer environment. So let’s be careful before we buy more of that stock.”

Core Scientific (NASDAQ:CORZ) is a North American company that provides digital asset mining services. It also provides electrical power and infrastructure services necessary to support ongoing operations. The company faced significant financial challenges after going public through a Special Purpose Acquisition Company (SPAC) in 2022 and was hit hard by a sharp decline in Bitcoin prices. This led to it entering bankruptcy protection in early 2024.

However, following its emergence from bankruptcy, the company has since adapted to changing market conditions. As companies increasingly focus on AI computation rather than solely on Bitcoin mining, the company’s business model, which emphasizes building application-specific infrastructure for data centers, has positioned it well for this shift.

CEO and President Adam Sullivan noted in an interview with Yahoo Finance that the company’s success in the Bitcoin mining sector for the past three years can be attributed to its unique approach of bringing in professionals from traditional data centers to manage operations, setting it apart from competitors. Earlier in the year, Core Scientific (NASDAQ:CORZ) made a strategic move by signing a deal with CoreWeave, a cloud computing firm, to help expand its artificial intelligence capabilities. This partnership is expected to generate $8.6 billion in revenue over the next 12 years and will involve the development of 500 megawatts of infrastructure.