Core Scientific shares drop 18% as Microsoft cuts some CoreWeave deals
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
In March 2024, Core Scientific inked a $100 million deal with CoreWeave to provide data center services in an attempt to diversify revenue streams ahead of the Bitcoin halving. As part of the deal, Core Scientific would lease a Tier 3 data center in Austin, Texas, to deliver up to 16 megawatts of capacity.
Related: Is crypto’s ‘Trump effect’ short-lived?
The company, which was once on the verge of bankruptcy, is one of the largest publicly listed Bitcoin miners in the world. According to Arkham Intelligence, it holds 755.6 BTC worth approximately $66.7 million at this writing. Its Bitcoin balance has been on the rise since December 2024.
Bitcoin mining companies’ shares fall as stock market struggles
The shares of some Bitcoin mining companies fell on March 6 amid the US stock market’s struggles. Shares of Cipher Mining (CIFR) dropped nearly 9%, while shares of CleanSpark (CLSK) and Bitfarms (BITF) tumbled 5% each.
The United States stock market had a Fear and Greed score of 17, which reveals “extreme fear” among investors, according to CNN’s index. The Nasdaq Composite Index — used as a benchmark for tech stocks — dropped by 2.6%, according to Google Finance data.
Macroeconomic concerns, including a possible US recession and the ongoing battles between the Trump administration and other companies over tariffs, are posing headwinds for risky assets. Bitcoin slipped below $90,000 on March 6, despite expectations for a crypto reserve in the US.
On March 7, the Trump administration will hold its first White House Crypto Summit. Confirmed attendees include the founder of Strategy, Michael Saylor, CEO of Coinbase, Brian Armstrong, and Ripple’s CEO Brad Garlinghouse, among others.
Related: Reaction to Trump’s crypto reserve: ‘Short-term optimism, long-term caution’
