Core Scientific shares drop 18% as Microsoft cuts some CoreWeave deals

Core Scientific sealed a $100 million deal with CoreWeave in March 2024 to provide data center services.

Shares of Bitcoin miner Core Scientific (CORZ) fell 18% on March 6 after reports that Microsoft reduced its commitment to CoreWeave, Core Scientific’s partner. According to the report, CoreWeave missed deadlines and had issues delivering materials needed to scale artificial intelligence models.

CoreWeave’s initial public offering filing, dated March 3, says Microsoft is its largest customer, accounting for 35% of revenue in 2023 and 62% in 2024. According to the report, Microsoft still retains some of its contracts with CoreWeave, while CoreWeave denied that any contracts had been canceled.

Core Scientific’s 1D stock price chart. Source: Google Finance

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