NEW YORK, June 24, 2026, 07:13 EDT
- Backblaze finished Tuesday up 43.6% at $11.66. The stock traded at $12.06 before the bell Wednesday.
- CoreWeave’s deal is valued at roughly $335 million, which comes out to 4.2 times what Backblaze expects to make in 2025 B2 Cloud Storage sales.
- CoreWeave’s new warrants would let it take up to roughly 7% of Backblaze’s outstanding shares as of the end of March, if the warrants are fully vested and exercised, according to an SEC filing.
Backblaze shares looked on track to rise for a second straight session Wednesday after news of a CoreWeave contract gave fresh attention to the smaller cloud firm’s AI link. The stock, which trades on Nasdaq, remained in premarket ahead of the 9:30 a.m. EDT open. June 24 does not appear on the Nasdaq holiday calendar.
The stock ended Tuesday at $11.66, gaining $3.54, or 43.6%. With 60.0 million shares at March 31, Backblaze picked up roughly $213 million in equity from the jump. That comes out to about 63 cents in market cap for every dollar of the $335 million deal value shown in the filing.
Investors are focused on that discount. Backblaze landed a contract worth 2.3 times its expected 2025 revenue and 4.2 times its 2025 B2 Cloud Storage revenue, but the market didn’t assign the entire value of the deal to the stock. Costs, timing, and customer usage continue to be key.
Backblaze said Tuesday it’s supplying cheaper storage for sections of CoreWeave’s managed storage platform. The deal hits HDD-based layers in CoreWeave AI Object Storage. HDD stands for hard-disk drive—the spinning-disk kind, less expensive and made for high-volume data, not the quicker flash memory used for faster jobs.
“Storage is the foundation every AI workflow is built on,” Backblaze CEO Gleb Budman said in a statement. CoreWeave’s Nick Hoover, VP, said Backblaze is known for its HDD storage that’s “reliable and easy-to-consume at scale.” Backblaze
SEC docs gave more info than the press release. Backblaze said the deal is for B2 Cloud Storage in its own sites and a managed service in CoreWeave data centers. Early order forms are set for five and seven years. The $335 million estimate comes from expected storage use and other terms.
CoreWeave also is getting warrants—rights to buy up to 4.19 million Backblaze shares at $7.60 each. That strike is below where shares ended Tuesday. Backblaze said some of the warrants vest over five years, and the rest vest if CoreWeave hits storage targets.
Backblaze’s B2 unit remains key for growth. B2 Cloud Storage sales jumped 24% to $22.4 million in the first quarter. That helped push total revenue up 12% to $38.7 million. Still, the company reported a net loss of $6.1 million. Adjusted EBITDA climbed to $10.1 million.
The CoreWeave deal gives Backblaze access to a buyer spending big on AI infrastructure. Last year, Reuters said that Vast Data, a bigger AI storage company, landed a $1.17 billion deal with CoreWeave. Backblaze’s deal is smaller, but points to the same demand: AI systems want low-cost storage for data that doesn’t have to run on the fastest level.
Backblaze picked up upgrades from analysts, according to StockAnalysis. Craig-Hallum took the stock to Buy and boosted its target to $16 from $6.50. William Blair raised its call to Hold and set an $11 target. Needham kept its Buy rating and $14 price target on Wednesday.
Backblaze shares booked their second-strongest gain of the year after news of the deal, Barron’s reported. Analyst Jason Ader at William Blair said the win gives “meaningful validation” for Backblaze’s HDD-based storage in AI infrastructure. Back in May, shares jumped 64% following quarterly results and annual recurring revenue numbers. Barron’s
The filing points to downside too. Actual payments on the contract could fall short of the $335 million estimate, and any exercised warrants would dilute holders. If CoreWeave’s capacity ramps up slower, if AI storage demand slips, or if data-center costs climb, the Tuesday rally could lose steam.
