Core Scientific shares fall 18% amid Microsoft deal changes

Shares of Bitcoin (CRYPTO:BTC) miner Core Scientific (CORZ) plummeted by 18% on March 6 following reports that Microsoft had reduced its commitments with CoreWeave, a key partner of Core Scientific.

This decision was prompted by CoreWeave's failure to meet deadlines and deliver necessary materials for scaling artificial intelligence models.

In March 2024, Core Scientific signed a significant $100 million deal with CoreWeave to provide data center services, aiming to diversify its revenue streams ahead of the Bitcoin halving.

CoreWeave is heavily reliant on Microsoft, which accounted for 62% of its revenue in 2024.

Microsoft's decision to scale back its agreements with CoreWeave reflects broader shifts in its AI infrastructure strategy, though it remains committed to significant investments in the sector.

Despite CoreWeave's denial of any contract cancellations, the reduced commitments have raised concerns about its financial stability ahead of its initial public offering (IPO).

The decline in Core Scientific's shares also reflects broader market volatility, with other Bitcoin mining companies experiencing similar drops.

For instance, Cipher Mining's shares fell nearly 9%, while CleanSpark and Bitfarms saw declines of 5% each.

As the crypto and tech sectors navigate these challenges, the upcoming White House Crypto Summit on March 7 is expected to address key issues affecting the industry, including regulatory frameworks and market stability.

The summit will host industry leaders like Michael Saylor and Brad Garlinghouse, showing the importance of these discussions in shaping the future of digital assets.