Core Scientific Shares Plunge 18% As Microsoft Pulls Back On CoreWeave Partnership

Shares of Bitcoin mining firm Core Scientific (CORZ) dropped 18% on 6 March 2025 following reports that Microsoft scaled back its commitment to CoreWeave, Core Scientific’s key partner.

According to Financial Times, CoreWeave struggled to meet deadlines and faced material shortages, impacting its ability to support artificial intelligence (AI) model scaling.

CoreWeave, a cloud computing firm specializing in AI infrastructure, disclosed in its March 3 initial public offering (IPO) filing that Microsoft is its largest client.

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Microsoft’s Role In CoreWeave’s Revenue Shrinks Amid Contract Uncertainty

Microsoft accounted for 35% of CoreWeave’s revenue in 2023 and a staggering 62% in 2024. While reports suggest Microsoft has reduced its commitments, CoreWeave has denied that any contracts were canceled.

In an effort to diversify its revenue streams ahead of the upcoming Bitcoin halving, Core Scientific signed a $100 million agreement with CoreWeave in March 2024.

Under the deal, Core Scientific agreed to lease a Tier 3 data center in Austin, Texas, providing up to 16 megawatts of capacity for AI workloads.

Once on the brink of bankruptcy, Core Scientific has since rebounded and is now one of the largest publicly traded Bitcoin miners.

Data from Arkham Intelligence shows the company currently holds 755.6 BTC, valued at approximately $66.7 million. Its Bitcoin reserves have been steadily increasing since December 2024.

The downturn in Core Scientific’s stock was part of a broader decline in Bitcoin mining stocks on March 6. Cipher Mining (CIFR) shares fell nearly 9%, while CleanSpark (CLSK) and Bitfarms (BITF) each dropped 5%.

Core Scientific, CoreWeave & Microsoft

Cantor dispels concerns about the CoreWeave/Microsoft relationship and it's impact on Core Scientific's share price.

Cantor quote: :

We believe that today's selloff is a buying opportunity and we are reiterating our overweight rating… pic.twitter.com/e5lKUMilxm

— Richard (@Richard73628254) March 6, 2025

Market sentiment remains fragile, with CNN’s Fear and Greed Index registering a score of 17, indicating “extreme fear” among investors. The Nasdaq Composite, a benchmark for tech stocks, declined by 2.6%, reflecting broader concerns over macroeconomic uncertainties.

Investors are watching for potential policy shifts as the Trump administration prepares to host its first White House Crypto Summit on March 7.

The event is set to feature key industry figures, including MicroStrategy founder Michael Saylor, Coinbase CEO Brian Armstrong, and Ripple CEO Brad Garlinghouse.

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Public Bitcoin Miners Adopt Treasury Strategy

In 2024, Bitcoin miners adapted to rising competition and market volatility by embracing new strategies. This included a notable focus on building their Bitcoin treasuries.

According to a 7 January 2025 report by NiceHash and Digital Mining Solutions, several public mining companies mirrored MicroStrategy’s approach by increasing their BTC holdings rather than selling their mined coins.

Companies like MARA Holdings, Riot Platforms, and Hut 8 even purchased additional Bitcoin using borrowed funds, signaling a strong commitment to this treasury strategy.

Beyond treasury strategies, diversification into high-performance computing (HPC) and artificial intelligence (AI) sectors emerged as a key trend among miners in 2024.

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