Core Scientific, a major Bitcoin miner, experienced a 10% share price drop after Microsoft adjusted contracts with partner CoreWeave, causing investor unease.
Microsoft Contract Adjustments
According to the Financial Times, Microsoft altered some contracts with CoreWeave due to dissatisfaction with certain deliveries. Although Microsoft remains a major client, supplying 65% of CoreWeave's business, such changes could negatively affect the company's finances.
Core Scientific and CoreWeave Partnership
Core Scientific and CoreWeave recently announced a $1.2 billion deal to provide high-performance computing services for AI and cloud solutions. This move is part of a strategy to seek new revenue sources following last year's Bitcoin halving.
Impact on Markets and Investors
Following the Microsoft contract adjustments, Core Scientific's stock fell 13% to $8.32. This occurred after the company concluded its bankruptcy reorganization and amidst CoreWeave's IPO filing, valuing itself at $35 billion.
While Microsoft's contract changes pose a challenge for Core Scientific, the company aims for financial stabilization through new funding and leadership strategies.
