Disclaimer / Disclosure
Everyone should own at least some Bitcoin (BTC-USD). What’s the right amount? 0% is too little. 100% is too much. For over a decade, my answer has been 10%. Should you buy or mine? I’ve done both. I participated in multiple government auctions for Bitcoin starting ten years ago and have continuously owned it both directly and indirectly up to today. While I’ve both purchased and mined it, my preference has largely been to simply buy it. I particularly liked buying crypto before various cryptocurrencies were added to convenient exchanges such as Coinbase (COIN), when they tended to get more expensive, and again when they were offered in spot ETFs such as Fidelity Wise Origin Bitcoin Fund ETF (FBTC). But that’s changed today. Today, there’s a single miner that offers more leverage to Bitcoin’s upside. I’m confident that Bitcoin will double from here at least once more. If it does, I don’t want to be just in Bitcoin – more than anything else, I want to be in Core Scientific, Inc. (NASDAQ:CORZ).
If Bitcoin doubles once more, then Core will likely (far) more than double. But there are a lot of catalysts that could benefit this stock even without a big BTC move. It is likely to get added to the Russell 2000 (IWM) and will get a big impact from index fund buyers. It is the largest public BTC miner, yet trades at a fraction of the value of peers such as Marathon (MARA) and Riot (RIOT):
TheMinerMag
Virtually all of these miners talk about getting into high-performance computing; Core is the only one who’s successfully done so. This speaks well to the quality of their team, the value of their assets, and offers a bit of diversification.
Core is leveraged to the price of Bitcoin and should get the best returns in a Bitcoin bull market, especially as it isn’t joining its competitors in diluting shareholders. No public competitor mined more in 2021, 2022, 2023, or so far, in 2024.
Caveat
Leverage works both ways; if Bitcoin crashes, then so will Core.
Conclusion
My conclusion is that Core is the best positioned cryptocurrency investment coming out of the halving.
TL; DR
I own CORZ; you might want to too.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
