Core Scientific Shares Fall 15% After Microsoft Reduces CoreWeave Deals

Shares of bitcoin miner Core Scientific (CORZ) dropped 15% in pre-market trading following reports of Microsoft’s reduced commitments to cloud computing firm CoreWeave.

• Core Scientific announced a $1.2 billion data center expansion with CoreWeave last month.
• CoreWeave filed for an initial public offering, aiming to raise $4 billion at a $35 billion valuation.
• Delivery issues and missed deadlines led Microsoft to decrease its agreements with CoreWeave, which constitutes 62% of its revenue.
• Microsoft has committed over $10 billion to CoreWeave's services by 2030.
• CoreWeave generated $1.9 billion in revenue in 2024 but incurred significant losses.
• The firm heavily relies on Nvidia’s AI chips and has raised $14.5 billion in debt and equity.
• Microsoft is adjusting its AI infrastructure strategy while continuing major investments in the sector.